Despite the fact that workers had more control over their bosses than ever before, it nevertheless ended up costing them.
Workers are seeing price increases as a result of the higher pay and perks they got, which corporations say they must implement in order to maintain expanding profits.
The Employment Cost Index, released today, shows that employers will have to pay 4% more in wages and benefits in 2021 than they did in 2020.
- However, Axios chief economic correspondent Neil Irwin noted that growth in the last quarter of the year was lower than predicted.
- Also issued today is the core PCE index, which shows prices rose by 4.9% in the previous year.
However, recent research by Accountable shows that several executives who have complained about labor shortages are actually making more money than their employees.
Shared with Axios before the US.
According to the Economic Policy Institute, the ratio of CEO to worker remuneration will rise to 351/1 in 2020 from 307/1/ in 2019.
First, more than 20 million people lost their jobs, and now they’re facing this second phase of the epidemic when inflation rise is expected to outpace pay gains, Stern School of Business professor of economics Nicholas Economides said to Axios.
It’s important to keep an eye on the Federal Reserve’s efforts to combat inflation this year.