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Fed Beige Book: Employment Activity Gets a Bump in the New Year

Economic as well as employment activity expanded slightly in the Tenth District. Photo credit: Shutterstock (Paul Brady).

Posted January 16, 2025

The Federal Reserve Board released its first Beige Book report for January which shows slight growth in economic acidity as well as employment levels.

Employment levels grew slightly over the past month with hiring activity concentrated in the service sector. Service sector wages also grew. Business contacts expect job growth early in the new year.

Some contacts expressed concerns that potential immigration policy could directly affect the labor market conditions. Food manufacturing and agricultural contacts in Kansas and Nebraska indicated restrictions on temporary migrant labor could lead to significant supply constraints.

While the service sector experienced a bulk of growth from consumer-facing services, the manufacturing sector continues to fight against a slight decline. Manufacturing contacts are still confident activity will rise in the early months of the year, citing improved production and incoming new orders.

The level of construction activity was unchanged in recent months, however, demand has shifted from municipal construction projects to healthcare facilities.

Loan demand is still unchanged from last year but the trend of lower demand for residential mortgage loans continues. Concerns related to credit performance over the next six months seem to have calmed among contacts.

View the full Federal Reserve Board Beige Book January 2025 report, here.