A new report from the U.S. Federal Reserve highlights that an increasing number of companies across the country are cutting jobs or holding off on new hiring amid growing economic uncertainty.
According to the Fed’s regional survey, known as the “Beige Book,” economic activity across most districts has remained relatively flat in recent months. However, businesses in several sectors have reported slower consumer spending and a drop in demand, especially in retail and manufacturing.
Many firms stated that they are streamlining their operations by reducing staff or allowing attrition to manage costs. Executives cited several reasons, including declining orders, the anticipation of tougher market conditions, and growing investments in automation and artificial intelligence to offset labor shortages.
The report also noted persistent cost pressures, particularly in raw materials, insurance, and healthcare. These rising expenses have forced many companies to adopt a cautious outlook for the months ahead.
Labor shortages continue to affect key industries such as agriculture, construction, and manufacturing, with some regions experiencing difficulties finding skilled workers. The combination of uncertain demand, higher costs, and workforce challenges has prompted many businesses to adopt a more conservative approach to staffing and spending.
Overall, the findings indicate that U.S. firms are preparing for a possible economic slowdown, adjusting their workforce and investment strategies to safeguard against potential downturns.
