Labor shortages և Supply chain disruptions are hampering businesses across the country as economic recovery from the coronavirus crisis accelerates.
The rate of return rose in April-May as consumer spending was pushed back by higher vaccination rates and weaker social exclusion measures, according to a report in the Federal Reserve’s Beige Book, which provides anecdotal evidence gathered by the central bank’s regional health partners. the world’s largest economy.
Businesses in some cases found it difficult to meet this requirement, however, given the difficulty of obtaining materials և resources.
“Manufacturers noted that widespread shortages of materials and manpower, as well as delays in delivery, made it difficult to deliver goods to customers,” the report said. “Similar challenges have continued in construction. “Home builders often point out that high demand at low interest rates exceeds the ability to build, which restricts sales to some.”
The shortage of labor was also widespread. Almost all of the districts in the report noted the impact on hiring and obtaining wider jobs.
“It was difficult for many companies to hire new employees, especially low-paid part-time workers, truck drivers and skilled traders,” it said. “The lack of job candidates prevented some firms from increasing their output; more rarely, it forced some firms to reduce their operating hours.”
Although the report noted that an “increasing number” of companies were offering benefits, including signing bonuses to fill higher starting salaries, salary increases were generally “moderate.”
“Communication expected labor demand to remain strong in the coming months, but supply to be limited,” the report added.
The Beige Book has come at a critical juncture for the US economy, its main policymakers, as concerns grow that recent inflationary pressures may be more persistent than many expect.
Wednesday’s report confirmed that spending had risen “at all levels”, particularly in the raw material sector, with more significant gains, particularly in the construction and manufacturing sectors.
“The increase in demand, however, has allowed some businesses, particularly manufacturers, builders and transport companies, to transfer most of their costs to their customers,” the report said. “It is expected that in the near future the contacts predict an increase in costs and an increase in prices.”