Saturday, November 16

With the return to work, labor costs increased


Wages and salaries soared 1% after advancing 0.8% in the fourth quarter. They were up 2.7% year-on-year. Economists expect wages to rise further in the second quarter as companies compete for the fewest workers

Con el regreso a los trabajos se incrementaron los costos laborales
Experts indicate that more jobs will be created in the coming months, which will generate further increase in labor costs.

Photo: Win McNamee / Getty Images

Redacción

Labor costs in the United States increased more than expected in the first quarter, as Wage growth accelerated , further evidence that inflation will rise this year as the economy reopens.

The Labor Cost Index (ECI), rose 0.9% in the last quarter after gaining 0.7% in October-December. That raised the rate of year-on-year increase to 2.6% from 2.5% in the fourth quarter .

ICE is considered one of the best measures of labor market inactivity and an indicator of inflation, since it adjusts to changes in the composition and quality of employment.

Economists surveyed by Reuters predicted that ICE would increase by 0.7% in the first quarter.

Wages and salaries shot up 1% after advancing 0.8% in the fourth quarter. They were up 2.7% year-on-year. Economists expect wages to rise further in the second quarter , since companies compete for the few workers.

Despite the fact that employment is at 8, 4 million jobs below its peak in February 2020, companies are struggling to find workers adequate as they scramble to meet strong domestic demand.

Federal Reserve Chairman Jerome Powell acknowledged the shortage of workers and said that “one factor would be that the schools are not open, so there are still people who are at home taking care of their children.”

With information from Reuters

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