Increasing salaries for workers and rapid inflation

Increasing salaries for workers and rapid inflation

Aug 01, 2022

958 Views

0 comments

The rate of wage increases by employers remained stronger than anticipated, but they were still insufficient to offset the inflation rate's even greater acceleration. According to the Employment Cost Index, which was issued by the Bureau of Labor Statistics, wages and pay for civilian workers grew 5.3 per cent over the year that ended in June and 1.4 per cent in the second quarter. Both metrics reflect a faster increase compared to the first quarter.

Although the quarterly change fell short of the 1.5% increase in the autumn of 2021, the 12-month gain was the largest since the spring of 1983. After accounting for inflation, the situation is less favourable. After accounting for increased costs, wages and salaries fell by 3.5% over the previous year. Just slightly less than the 3.6 per cent decline for the year ending in March, which was the worst decline since the agency started compiling figures that were adjusted for inflation in 2001.

According to Jason Furman, a professor of economics at Harvard University and a former head of the Obama administration's Council of Economic Advisers, the statistics clearly reveal that individuals are falling behind. Employers have had to boost pay to retain employees and fill unfilled positions as a result of the Covid-19 pandemic's extremely tight labour market, even though the rises don't keep pace with the cost of living.

Source - CNN 

Previous days news

Comments

    Article
    How to Avoid Burnout in 2022

    Whatever your work setting may be, it’s important to stay productive while you don’t burn out. Here ...

    COVID-19 - 6 Challenges Staffing Firms Are Likely to Face

    Most industries have severely suffered in the ongoing pandemic with a few exceptions, like healthca ...

    Tips To Help You Create A Robust Hiring Strategy For 2021

    While employment is steadily rising in all sectors, the fear of COVID-19 still reigns supreme. As t ...

    All you need to know about the teaching profession

    Teaching jobs: transformative teacher roles you can undertake amidst the teacher shortage in the US ...

    Show more news