In addition, many firms are still having trouble finding and retaining qualified entry-level workers. Still, most contacts have not reported added upward wage pressure in the face of ongoing labor market tightness. The District's furniture industry got a boost when a manufacturer decided to consolidate two of its plants into an Arkansas plant, bringing about 900 new jobs. Two new distribution warehouses will be built in the District, one that will employ almost 400 in Illinois and another that will employ about 450 in Mississippi. Truck engine and parts sales have recently exceeded expectations, according to a contact who expects this trend to continue in the coming months.
Most contacts remain optimistic about economic conditions in the foreseeable future.
The District's apparel industry, however, is still experiencing plant closures because of overseas competition. For example, a shirt manufacturer closed at the end of last month, eliminating 135 jobs. In addition, the District's paper industry will shrink some as a major producer shutters two plants in a companywide restructuring. About 300 jobs will be lost at the two plants. Real Estate and Construction Monthly residential construction permits in May picked up in six of the District's 12 metropolitan areas, mostly in the southern and eastern parts of the District.