Inflation Is Subsiding In The US: What That Means For Your Pay

Inflation Is Subsiding In The US: What That Means For Your Pay

The increase in wages could decrease next year, as inflation seems to be finally subsiding in the US. At Globe Live Media we explain this situation in detail

In general, wages in the United States (and everywhere in the world, for that matter) have almost always lagged behind levels of inflation . According to the Bureau of Labor Statistics (BLS), the purchasing power of American workers has been reduced by inflation , even though employers have indeed increased the wages of their employees.

However, various economic specialists have affirmed that the United States reached its inflationary peak . Part of this reasoning relies on the fact that, for the month of October, year-on-year inflation was 7.7%, according to the BLS , news that not a few took as a sign that inflation was finally subsiding.

This raises a fundamental question: will wage increases in the United States then end? How wages will be affected as inflation subsides seems to be one of the main concerns of workers in the country.

According to a report by the CNBC news network, by 2023 the increase in salaries could be less, since the macroeconomic challenges of companies will probably cause them to reduce their budgets for salaries. However, the increases could not be that low due to the strength of the US labor market.

The fact that the labor market is beneficial for employees (since unemployment levels are still extremely low) means that companies must “fight” to retain their staff, and part of this “fight” implies, of course, maintain a policy of progressive salary increases .

This, in fact, not only means that companies offer gradual salary increases, but enough salaries for workers to decide to return to work in person, leaving remote work aside.

According to a CNBC report, salary increases next year could be within 4% per year, and in highly demanded vacancies, the salary increase could be 5% .

Samuel Edwards
Samuel Edwards is the name you must have heard many times while reading reports related to Finance, that's what he is good at. From Major Investments to Stock Market Updates, he got 'em all. Be ready to blow your mind by the mind-blowing reports of Finance World from Samuel Edwards.