Beige Book: Oil Collapse Costing Jobs But U.S. Recovery Endures

(RTTNews) - The collapse in oil price has been cost jobs in certain regions of the U.S., according to the latest Beige Book report from the Federal Reserve.

Layoffs were reported throughout the Fed's Midwest regions, including Minneapolis, which contains the key North Dakota shale fields, and Dallas, where weakness in the Texas oil sector was apparent.

Although the Fed said the broader U.S. economy expanded at a moderate or modest pace in the period including most of February through March, the manufacturing sector was hurt by the strong dollar and a harsh winter.

Activity in the Richmond, Chicago, Minneapolis, Dallas, and San Francisco Districts grew at a moderate pace, while New York, Philadelphia, and St. Louis cited modest growth.

Boston reported that business activity continues to expand, while Cleveland cited a slight pace of growth. Atlanta and Kansas City described economic conditions as steady.

Labor markets remained stable or continued to improve modestly, even as layoffs related to the decline in oil and gas prices were reported in multiple Districts.

Of note, districts noted modest upward pressure on wages and overall prices.