Here in Idaho, our contacts tell us that they have noticed shortages of skilled workers, and they also are seeing increasing difficulties recruiting unskilled workers, all of which has put strong upward pressure on wages in the state. While reports like these do heighten my sense of concern, I still draw some comfort from the fact that markups remain very high. So, even with more cost pressures, firms would have the room to absorb the increases without fully passing them on into their prices if competitive conditions in product markets induced them to do so.