Temporary Employment Firms First District temporary employment firms continue to expand. Contacts report revenue growth between 10 and 20 percent over a year earlier. Markets for temporary and contract workers remain extremely tight across all industries and locations in the First District. Wages also continue to increase but the increases are said to be slowing down for less skilled occupations. Outlooks for the next twelve months are mixed.
Some respondents are optimistic, predicting continued solid performance.
Others are more cautious, anticipating a softening of the regional economy toward the beginning of next year. Nonbank Financial Services Respondents at insurance companies report revenues in the second quarter of 1998 ranging from flat to 25 percent increases. Mutual funds and variable annuities were responsible for much of the growth in sales. Employment changes range from down 5 percent to up 4 percent. Most respondents note continued shortages of information systems personnel.