Although most contacts mentioned difficulty in finding qualified personnel, none reported an inability to fill customer orders or significant wage increases. All contacts expect a steady growth in demand to continue for the next few months. Union sources reported continued wage growth, averaging 3 per cent. Pension funds have done well recently due to high stock market returns. This has been balanced by a concern over the possibility that higher health care costs will be borne increasingly by workers and less by the firms.
Job security remains a high-priority issue in union negotiations.
Reports on the demand for information technology were mixed, depending on the type of services provided. Contacts who experienced an upsurge last quarter due to Y2K-related consulting expect a slowdown. Although January sales are off from the high pace of a year ago, the level of home sales remains high. Some builders reported that existing homeowners have begun to account for a smaller share of their sales. These builders say that this could indicate a weakness in demand, because potential buyers may not be able to sell their existing homes.