In the United States, median weekly salaries have climbed faster than inflation during the last year.
According to the Bureau of Labor Statistics (BLS), full-time wages and salary employees’ average weekly salaries increased 6.1% year on year in the first quarter, while the Consumer Price Index for all urban consumers increased 5.8%.
According to the journal, the average weekly salaries of these individuals reached $1,100 in the first quarter.
According to Bloomberg on Tuesday, this is a shift from the previous two years, when wage growth fell below inflation.
Despite the fact that inflation has slowed, companies are still offering higher pay to recruit and retain workers in the midst of the current labor crisis, according to the study.
The faster pace of earnings growth, according to the research, may encourage the Federal Reserve to hike interest rates again when policymakers meet in May.
Continued wage rises might be problematic for Main Street’s small and medium-sized businesses (SMBs).