By Emily Lorsch
Inflation in the United States hit a record high in June 2022. Consumer prices soared by 9.1% compared with a year prior — the largest annual increase since 1981. While wages are rising, they’re not keeping up with inflation. Wage growth has been consistent with an inflation rate of about 4.5%. Meanwhile, as of November, inflation was at 7.1%.
Americans are feeling the brunt at the grocery store and gas station and with rent payments, too. Two-thirds of workers said their pay isn’t keeping up with these higher prices. So why aren’t salaries keeping up with inflation?
Corporations are still raising salaries and offering other perks to retain employees, but they’re not necessarily factoring in the cost of living, as that’s not typically how compensation determination works. Instead, organizations focus on the cost of labor and the competitive landscape in making these decisions.
Republished with permission[/vc_message]
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
This article originally appeared here and was republished with permission.
