“Here’s how inflation is supposed to work” – MarketPlace

wagegrowth_0GRAPHIC SOURCE: Danske Bank via David Blanchflower

Here’s how inflation is supposed to work : Normally, as unemployment goes down, competition for workers pushes up wages, which in turn pushes up the price of goods. So markets saw last weeks report of rising wages as an indicator that inflation would soon follow. But when you dig into those numbers, you see that wage growth was very lopsided. “Three-quarters of workers saw absolutely nothing,” David Blanchflower, a labor economist at Dartmouth College, told us. All that wage gain was concentrated at the top for supervisors, managers and executives. So don’t expect inflation to really begin to climb until more people start getting a raise, Blanchflower cautioned. “Three-quarters of workers saw absolutely nothing,” David Blanchflower, a labor economist at Dartmouth College, told us. All that wage gain was concentrated at the top for supervisors, managers and executives. So don’t expect inflation to really begin to climb until more people start getting a raise, Blanchflower cautioned.

The employee is always right? And that’s why we do “climate surveys.” | While wages may not be rising much for most workers, with unemployment low and some industries struggling to fill open positions, companies are putting more emphasis on employee satisfaction, according to Brad Grossman, author of “Zeitguide,” a book that gives advice to C-suite leaders. Plus, Grossman tells us, between social media and websites like Glassdoor, potential employees now have more resources than ever when it comes to learning about a company’s culture and issues before applying.

SOURCE: MarketPlace

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