Posted by on September 9, 2021 3:01 pm
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Sharp Increase in Wages Contributing to Growing Concern Over Rising Inflation: Economist

An increase in wages has prompted concerns about growing inflation among economists as businesses attempt to entice employees back to work amid the COVID-19 pandemic. It comes after the Labor Department released its disappointing August jobs report which showed the U.S. economy added just 235,000 jobs during the month, versus expectations of around 750,000, while the unemployment rate declined by just 0.2 percent to 5.2 percent. However, the report also showed that wages continued to rise, with average hourly earnings increasing to 4.3 percent on a year-over-year basis, up from 4 percent a year ago, and jumping 0.6 percent on a monthly basis, double of what Wall Street had anticipated. In an effort to counteract shortages and attract workers amid nationwide labor shortages and hiring difficulties owing to the COVID-19 pandemic, numerous companies, particularly those in the dining and hospitality sector, as well as small-business owners, are increasing pay for employees. Last week, Walmart announced that it will be raising the …

Originally appeared on The Epoch Times

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