Worker Pay and Benefits Grow at Record Pace, Pressuring Inflation.
Onyinye Ekemezie
University of North Texas
May 6th 2022
Intro
of who you are (senior, major, work experience), why you are taking this course, etc.
Introduction
The title of the article:Worker Pay and Benefits Grow at Record Pace, Pressuring Inflation
Link: https://www.programbusiness.com/news/worker-pay-and-benefits-grow-record-pace-pressuring-inflation
Date of publication: May 2, 2022
Author: Neilson
Summary of the Article
During Q1, the compensation of workers increased rapidly in America.
The labour market is the force behind increased money in the pocket of the workers.
The labour market provides the balance between increasing the supply of money to workers while maintaining the inflation.
Summary of the Article
There is an increase of 4.5% every year on wages for both government and private employers.
The increase in the wage rate began in 2001 but it increased until now where it is over 4.5% annually according to Department of Labor.
When the increase is compared per quarters, in Q1, it increased by 1.4% while in Q4 by 1.0% – Which year is that?
Summary of the Article
Increase in wages has led to a boost in the economy through expansion of expenditure.
With more income through the increase in wages, citizens increase the budget allocated for expenditure.
Consumer spending increased by 1.1% in March according to the published report.
Categories of Expenditure
Traveling and dinning.
Gasoline
Food
Clothing.
Therefore, despite the inflation the expenditure still increased.
Summary of the Article
The increase in the wage is as a result of the bargaining power of the workers through trade unions.
The argument by the economist is that there is a need to increase prices because of increase in wages.
When prices increase, then the rate of inflation also increases.
Example
Consumer prices increased by 6.6% as per the reports of March.
To prove the increase workers from Pinches Tacos proved for the 9inecrase in wages where a cook increased from $16 to $20 per hour.
The company cited poaching as one of the reasons why salaries were increased to prevent employees from moving to competing companies.
Gavrilova Aguilar, Mariya (GAM) – This slide and the next slide can be combined in one slide.
Summary of the Article
As a response to increase in labour cost, the Pinches company increased menu prices to compensate for the increase in wages.
Due to increase in wages, the supply of labour is higher than the demand for the labour.
Therefore, in general the reason why companies are increasing
Summary of the Article
The rice in prices has been causing the reduction in wage increase among the workers as a way of adjusting the inflation in the economy.
According to statistics a way of adjusting the inflation wages reduced by 3.3%.
But some companies insist that increase in wages will be necessary in future due to changes in expenditure.
Gavrilova Aguilar, Mariya (GAM) – So is there an increase in wages or a decrease in wages?
Summary of the Article
RSVP Party Rentals, a Las Vegas-based events company believes that the pressure for increase in wages will ease due to stabilization of demand for the products.
Therefore, increases in wages results ton increase in prices of the products.
It’s the effect of inflation as a result of increase in wages that causes the prices of products and services to increase.
