Federal Reserve Beige Book: Employment levels have been largely stable in recent weeks, while labor demand has been sluggish

The Federal Reserve Beige Book says employment levels have been largely stable in recent weeks, with generally subdued demand for labor across regions and industries. In most regions, an increasing number of employers report that they have reduced headcount through layoffs and attrition, citing weak demand, rising economic uncertainty and, in some cases, increased investment in artificial intelligence technology. Employers hiring in the report generally said that labor supply has improved, with some employers preferring to hire temporary and part-time workers rather than offer full-time employment. However, due to recent immigration policy changes, labor supply is tight in some regions in the lodging, agriculture, construction and manufacturing sectors, according to the report. Wages rose in all reporting regions, generally at a moderate to moderate rate, and labor cost pressures have intensified in recent weeks as employer-borne health insurance costs have risen sharply.