Firms differ in the degree to which they are adjusting compensation packages to deal with labor shortages. Temporary Employment Firms Temporary employment firms in the First District continue to expand at a brisk pace. Demand continues to far outpace supply for more highly skilled workers, from computer programmers to clerical workers with knowledge of multiple software packages. Contacts foresee continued double-digit growth in revenues over the next year. The residential real estate market in New England is strong.
Most contacts report active markets and more sales than last year.
Activity has risen most markedly in Massachusetts and New Hampshire. The number of sales increased also in Connecticut and Rhode Island, while the number of sales in Maine was stable until February, when it rose markedly. Increased activity has not generated price increases except in New Hampshire and Massachusetts, where high demand and extremely low inventory levels have caused prices to rise 4 to 9 percent from a year ago. Mild winter weather has allowed Massachusetts builders to work at full capacity during the past few months, and some spec construction is being undertaken. Contacts are optimistic, however, and stated that unless interest rates go up, the market will remain strong for the next few months.