Hiring Eases Despite Growth in Most Regions

Demand for new employees eased in parts of the country by mid-September even though most regions were enjoying moderate-to-brisk rates of economic growth, the Federal Reserve said Wednesday.

In its latest “beige book” report on the national economy, the central bank said there were few reports of accelerating wages and consumer prices were well behaved.

But it reported more pressure on wholesale prices in a reference that was likely to keep inflation worries alive before the Fed’s next interest rate meeting Oct. 5.

“All district economies continue to exhibit overall strength, with most experiencing moderate-to-brisk rates of growth,” the Fed summary said.

The “beige book,” based on reports from all 12 regional Fed banks, found continuing “widespread labor shortages” but pointed to slackening in hiring demand.

The San Francisco Fed said weaker aircraft sales were causing layoffs at major producers and suppliers. The Dallas district said it needs fewer computer experts since modifications to programs for year 2000 were completed.

Economic conditions were strong in the San Francisco district, the Fed report showed, with retailers reporting moderate sales growth and service providers noting a pickup in growth above an already rapid pace.

Manufacturing activity picked up in all districts, getting a boost from resurgent Asian demand after a slowdown in 1997 and 1998, the report showed.

Wage and salary rises were under control.

“There are few reports of acceleration in nominal wages and salaries, although some districts note a substantial upswing in the cost of health-care benefits,” the report said. Price pressures were “mostly calm,” but several Fed districts said wholesale prices were on the rise for raw materials.

While retail sales and new-car sales were strong, the Fed said a slowdown was apparent for sales and construction of new homes