There is surprisingly little sign that the end of emergency labour-market programmes has increased the number of people looking for a job
The recovery from the pandemic has brought about a startling change: prices and wages are both surging. American hourly pay rose by 4.6% in the year to September while consumer-price inflation of 5.4% is more than wiping out those gains. In Germany inflation has reached 4.1% and the main public-sector union is asking for a pay increase of 5%. Wages and prices have even picked up modestly in Japan.
A hazy understanding of what is driving wages up is making life harder for central banks. Most have argued that high inflation is temporary. But excessive wage growth could be the next factor to drive up prices, especially if workers demand higher pay in the expectation of future rises in the cost of living—an insurance that exacerbates the very thing it seeks to offset.
In the popular imagination workers’ share of the economic pie has room to grow at the expense of profits. But recent research suggests that labour’s share of the value created by firms has in fact been fairly stable in most rich countries during recent decades. We estimate that it has already risen by one percentage point on average in big rich countries during the pandemic. There may not be very much scope for further increases.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ray Fosse, catcher knocked over by Pete Rose at 1970 All-Star Game, dies at 74Fosse also helped the Athletics win the World Series in 1973 and 1974, and he later became a popular broadcaster for the A's.
Read more »
Wages are surging across the rich worldAmerican consumer prices rose by 5.4% in the year to September, according to figures published on October 13th, exceeding economists’ forecasts
Read more »
Why Call Her Daddy Host Alexandra Cooper Says ‘Groupthink Has Spiraled’Alexandra Cooper, the cofounder of the popular 'Call Her Daddy' podcast, spoke at the Forbes Under 30 Summit about cancel culture, the importance of owning your intellectual property, and the future of her show.
Read more »
A Rohingya leader’s murder highlights rising insecurity in refugee campsThe sprawling refugee camps in Bangladesh—now home to more than 1m refugees—have become bases for Rohingya militant groups and criminal gangs
Read more »
A post-covid staff shortage afflicts Britain’s hospitality industryThere are now more job openings in Britain than unemployed people
Read more »
Crystal Murray Becomes Ice Cream for 'Too Much To Taste'Watch the 19-year-old's latest release off her 'Twisted Bases' EP.
Read more »