The information that the 12 federal reserves of the United States have collected reflects how, after the improvement that was seen between the months of May and July, this trend has continued in general, without major changes in its activity, or scares in the front of prices, although it is perceived, at this point, a derived increase of tariffs. Although employment levels have remained without major changes, it is in this front where They are beginning to see some tensions related to Donald Trump’s policy. In some districts, companies are less willing to hire, due to the fall in demand or uncertainty, in addition to In the middle of the districts of the 12 federal reserves, a shortage of immigrant labor is being noticed.
On a day in which it has been known how the amount of available positions has fallen to minimums of the last ten months, the Fed document confirms that some cracks are emerging in the US labor market. According to the last publication of the Fed Beige book, “seven districts warn that companies are refusing to hire, for a weaker demand, or for uncertainty,” he says, and also highlights how there are two districts that have reported an increase in layoffs.
In addition, the Trump administration policy regarding immigration is also impacting the country’s labor market. The document indicates how “half of the districts have noticed that a reduction in the availability of immigrant workforce, something that is impacting the construction industry in New York, San Louis, Richmond and San Francisco,” they stand out.
Regarding wages, “Half of the districts have described modest growth in salarieswhile most of the remaining report moderate growth. “
Related to the above, in the front of prices, the trend of increases that was perceived in July in the different federal reserves of the country has continued, and It gives way to “moderate, or modest” growth, in ten districts of the Fed. In the remaining two, however, the advance has been even stronger.
The impact of tariffs is related, according to the beige book: “Almost all districts have perceived related price increases With tariffsand in several of them it is recognized that these have been especially strong in products prices, “he says.
On the other hand, the Beige Book of the Fed has also indicated that some manufacturing companies are reinforcing the local character of their supplies chains and automating processes to reduce costs. In this sense, the text published by the Central Bank indicates that there have been cases of companies that are cutting their templates through The reversal of teleworking and the return to the office.
It also points to an increase in The application of AI tools by numerous companies to automate production processes and eliminate workers, reducing the cost by labor. Thus, the Central Bank has registered the impact of this new technology on the US labor market, which, according to July Jim Farley, Ford Executive Director“It will literally replace half of white collar workers in the US“.
