With over 10 million open positions nationwide, companies are being forced to raise wages and pay incentives in order to attract qualified workers. Salaries and hourly wages in nearly every industry nationwide have risen over the past year, elevating employment costs for numerous companies. Companies tend to pass along the cost of higher employment expenses to customers in the form of higher prices, translating into inflation.
Economists closely track wages to determine if rising pay is keeping up with inflation. The Department of Labor publishes the Employment Cost Index each quarter, which includes wages, benefits, and salaries. For many, the rapid rise in inflation this past year has out paced salary and wage hikes, enticing many to quit and seek higher paying jobs. Increasing wages can also lead to consumers spending more thus feeding economic expansion throughout the economy.
Sources: Department of Labor
PlanRock offers financial planning tools, investment portfolios, various levels of advice, and full-service support. Please contact 800-677-6025 or go to www.PlanRock.com for more information about how we can help you reach your goals.
© PlanRock Wealth Management, LLC. The content above is available for use only by authorized subscribers, clients and where permissible as such. This content is not authorized for resale. Past performance does not guarantee future results. The sources we use are believed to be reliable, but their accuracy is not guaranteed.