Increasing salaries for workers and rapid inflation
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
Category
Investigations
Work Life Integration
Whistleblowing
Educational Assistance
Dependent Benefits
Employment Testing
Disability Accomodations
Employee Relations
Bonuses & Incentives
Workplace Wellness
Social Media
Opening & Closing
Organizational Structure
Wellness Benefits
Relationship Management
Health Savings Accounts
Gender Identity
Downsizing
Mental Health Benefits
Leadership Development
Policies & Practices
Firing
Paid Leave
Business Acumen
Raise
Employee Resource Groups
Drug & Alcohol Testing
Mentoring & Coaching
Family & Medical Leave
Performance Management
Termination
Retaliation
Retirement & Recognitions
Employee Surveys
Consultation
Affirmative Action
Communication
Inclusion, Equity & Diversity
Workforce Planning
Workplace Harassment
Campus Placement
Eligibility Verification (I-9)
Onboarding
Severance Pay
Contemporary Issues
Time Worked
Vendors & Software
Inclusion, Equity &
Labor Relations
Intellectual Property
Tags
Article
Tips for Staffing Agencies to Create a Competitive Advantage
Today, it is a $174 Billion industry and one of the leading B2B businesses in the US. Whenever HR p ...
Nursing Job Openings
It’s no secret that the healthcare sector has been reigning in all its powers over the years, parti ...
How Startups Can Ensure Success While Working With Freelancers
However, the scenario has changed drastically in the last ten years. According to a report by Forbe ...
Effective Ways to Stay Productive While Telecommuting
Remote working is not a new thing in the US but a lifesaver in the current situation when social di ...
Comments