Have American employers finally put more power behind the paycheck? The nation’s workforce is now enjoying the highest wage increase averages in 14 years, as evidenced by budget increases companies are spending on workers’ compensation.
Kazoo has compiled a list of facts and statistics about the causes of these increases, combining research from employer surveys, business news articles and the Bureau of Labor Statistics.
One of the main factors behind the increase in these budgets is inflation, which is currently at its highest level in 40 years. With a 7.9% increase in the consumer price index in February 2022, the rising cost of everyday consumer goods like gasoline and food means that wages have lower purchasing power . Compensation has not kept pace with inflation or the cost of goods and services.
Combine rising inflation with the Great Resignation, and employers faced a widespread need to hire new workers and retain current employees. In-demand skilled workers are able to seek out the best wages and other benefits, including remote hours, flexible workdays and, in some cases, a four-day work week.
When it comes to currently employed workers, those who change jobs see even bigger pay increases than if they had stayed where they were — a fact that’s been true since 2011, according to a Federal study. Reserve Bank of Atlanta.