(Reuters) – Although the U.S. economy has improved and is more prosperous than it was a decade ago, it faces challenges and risks because some companies are unable or unwilling to hire employees, Patrick Harker, President of Philadelphia Federal Reserve, said Friday.

Harker declared, in remarks prepared for an event by the Chamber of Commerce for Greater Philadelphia, that “the economy is improving, yeah, but still loaded with risks, constraints.”

Harker noted that businesses reported a rise in their sales and expected it to continue. Harker was referring to a Chamber survey. In remarks that didn’t address monetary policy, Harker stated that many firms face higher expenses as they try to retain and hire employees.

He stated, “Going ahead, employers will have to think creatively how they can attract and keep talent.”