The laws of physics state that what comes up must come down. At present, salary is exempted from the rule.
In February 2020, Americans earned an average of $28.51 an hour, before the pandemic significantly affected the US. But last month, Americans earned about 10% more per hour on average ($31.51) than in February 2020.
This is the highest hourly wage ever, according to data from the Bureau of Labor Statistics.
What’s more: Salaries increased by more than 4% in just nine months alone.
These wage benefits come as inflation is at its highest level in nearly 40 years, and a record 4.5 million Americans quit their jobs in November. According to BLS data, there are 10.6 million job opportunities in the US and 6.3 million people unemployed.
Employers to lure workers into, in some cases, free iPhones have put AAPL at risk,
College tuition reimbursement and higher wages.
Are the wages only increasing from here?
Perhaps, but not for long, said Diana Furchtgot-Roth, who served as chief economist at the Labor Department from 2003 to 2005.
“At some point it will hit an inflection point, but not yet,” Furchgot-Roth, who now teaches at George Washington University, said.
That point will either be “when labor force participation increases, or when the economy goes into recession, reducing demand for workers,” she told Businesshala.
Currently, the labor force participation rate, a measure of the share of people working or looking for a job, is 61.9%. This is the same level as it was in November and was 1.5 percent lower than before the pandemic.
But if that rate doesn’t rise — meaning employers are still scrambling to hire new workers — “there’s no reason wage increases would have to roll over anytime soon,” said chief of New York-based Amherst Pierpont. Economist Stephen Stanley said. Fixed income securities brokerage firm, said.
“Furthermore, the longer inflation is a problem, the more likely it is that workers will demand higher nominal wages to offset price increases,” he said. (Nominal wages are what workers see on their paychecks, not adjusted for inflation.)
On the other hand, if the pool of candidates looking for work grows, wages for low-paying jobs “will eventually be pulled down,” said Alice Gould, an economist at the Economic Policy Institute, a liberal think-tank.