Federal Reserve Banks across the country collect anecdotes from contacts and hone in on concerns for Federal Reserve Beige Book summaries, published eight times each year. Historically, insights about conditions affecting low- and moderate-income communities have come from the perspective of businesses. Several Reserve Banks began including “Community Conditions” and “Community Perspectives” sections in the fall of 2022. These sections provide insight into local changes through direct accounts of nonprofit and community leaders and workforce professionals serving lower-income people. Here are some takeaways from the November 2024 Beige Book, which was prepared at the Federal Reserve Bank of Kansas City and based on information collected on or before November 22, 2024.

Please note that the Beige Book summarizes comments received from contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials.

“Amid rising community needs among school-aged children, the homeless and unsheltered, and individuals struggling with mental health and addiction, a new Medicaid funding mechanism was introduced to address social determinants of health through the development of social care networks. Through the program, social service providers provide integrated mental health, homeless and addiction-related care and services, as well as workforce development for the healthcare workforce to the community. Funds are now flowing to a broad range of recipients, though with mixed uptake by state.”
– New York Fed, Federal Reserve 2^nd District, Community Perspectives

“Several workforce development contacts reported that demand for labor, particularly skilled labor, remained elevated. One contact said that more employers were working with workforce intermediaries to resolve employee attendance issues through measures such as providing transportation for new hires. Others indicated that employers were more open to apprenticeship programs. Workforce challenges persisted in the childcare sector. One childcare provider indicated that finding and retaining quality workers was difficult. In addition, because of declining enrollment, the provider’s childcare center was expected to increase its fees in January by 20 to 40 percent above the current level, as operating costs will be shared among fewer customers. Another contact explained that fewer childcare providers in rural communities contributed to lower workforce participation for women.”
– Cleveland Fed, Federal Reserve 4^th District, Community Conditions

“Despite sustained demand for affordable rental housing, developer contacts indicated recent challenges to fully financing their projects, including funding gaps that emerged late in the pre-development stage. Contacts observed that they may have to pull funds from projects earlier in the pipeline to fill these financing gaps. Workforce intermediaries and businesses reported that moderating job growth contributed to greater confidence among employers that they can obtain the labor they need. Several labor contacts noted an oversaturation of entry-level talent, at least relative to the availability of aligned positions. Other sources reported increased interest among retirees in finding work to supplement incomes.”
– Atlanta Fed, Federal Reserve 6^th District, Community Perspectives

“Community, nonprofit, and small business contacts saw little change in activity over the reporting period. Many contacts reflected a “wait and see” sentiment given the upcoming change in presidential administrations and uncertainty around the path of interest rates. State government officials saw flat income and sales tax revenues, though several mentioned strong growth in gambling tax revenues. Affordable housing developers welcomed slight declines in building costs, noting the potential for increased affordability for low-income, low-equity, or first-time buyers. Overall, affordable housing supply remains constrained, and contacts noted particularly limited supply in small and rural markets. Nonprofit leaders continued to be challenged to secure enough funding for high-demand programs—such as childcare—as well as for operating and overhead costs. Community contacts noted that subsidies for utility costs were more limited this year because funds had been used for high summer cooling bills.”
– Chicago Fed, Federal Reserve 7^th District, Community Conditions

“Contacts reported job openings in low-paying occupations remained plentiful, and workers in those jobs were still finding wage gains from job hopping. However, compared to earlier in the year, contacts also reported more workers faced lost hours and income, had difficulty in finding full-time work, and were increasingly likely to take second jobs to make up the difference. The number of recently laid off workers in low-wage occupations remained very low across the District but was reportedly above the national trend, particularly in Nebraska and Oklahoma where weakness in agricultural conditions posed a headwind to labor demand.”
– Kansas City Fed, Federal Reserve 10^th District, Community Conditions

“Nonprofit service providers noted continued high levels of demand for social services. Some said the families they serve were seeing lower benefits from federal and state services like food stamps, Medicaid, and housing and unemployment assistance, or are losing access to these services altogether. Lack of affordable housing, childcare, and transportation remain key impediments to work for low-to-moderate income individuals. Some contacts noted an increase in demand for social services by immigrants. One nonprofit said that Texas Executive Order GA-46, which requires hospitals to ask patients about citizenship status, has prompted fear in the immigrant community and that some families are not seeking the medical care they need because of it, even if they are in the U.S. legally. The nonprofit works to clarify to the families they serve that the order does not change patients’ access to or quality of medical care.”
– Dallas Fed, Federal Reserve 11^th District, Community Perspectives

“Communities across the District continued to report widespread shortages for affordable housing and associated increases in housing insecurity and homelessness. Demand for mental health services and food assistance programs remained elevated. Reports indicated that some employers cut back on coverage for mental health services due to recent large increases in medical insurance costs. Community organizations reported that demand for training and career development services picked up in several parts of the District, particularly in the Mountain West states. At the same time, some contacts highlighted weak enrollment figures in post-secondary educational institutions. Some nonprofit organizations reported a recent increase in funding from the public sector, particularly for programs related to sustainable growth and improving financial literacy and access.”
– San Francisco Fed, Federal Reserve 12^th District, Community Conditions

Visit the November 2024 Beige Book report for a full national summary and more information about economic conditions from each Reserve Bank, including labor markets, financial services, real estate, and more.