Payrolls are increasing in several of the United States cities with the highest inflation rates, indicating that a wages price loop is now strongly rooted in the economy of metropolitan areas from Miami through Phoenix. (Read more)
According to Labor Department data released on Friday. Non-government employees wages & salaries increased 5.2% nationally from the prior year’s third quarter.
That indicated a small decline from the preceding timeframe. However, the increase was noticeably greater in some locations, particularly those where the expense of living has increased most dramatically.
Record pay increase of 7.1% and 6.6%, respectively, was report for Miami & Phoenix. Atlanta, Minneapolis, and Seattle are among cities where third-quarter growth was the greatest on record.
The figures suggest underlying inflationary pressures that won’t quickly decrease and will probably keep the Federal Reserve on a track of swift interest-rate increases.
The Employment Cost Index. That measures benefits & wages broadly for Labor Department, eliminates the impacts of shifts in the employment balance, such as the shift that happened during the epidemic when many low-paying jobs at establishments like restaurants and hotels vanished.