Employment costs in the United States rose at the fastest rate recorded in the third quarter, as companies in various sectors increased wages due to labor shortages.
The labor cost index (hike, for its acronym in English), a broad gauge of wages and benefits, was up 1.3% from the previous quarter, according to Labor Department data released Friday. The indicator increased 3.7% compared to the previous year.
The rise in wages was widespread across all sectors, showing that labor shortages have put pressure on many types of companies to raise wages.
Wages and salaries also increased at a record pace, with an increase of 1.5% in the quarter.
Unlike the average hourly earnings figures in the monthly jobs report, the hike it is not affected by job changes in different sectors and occupations, something that has been especially serious in the midst of the pandemic.
While millions of Americans are still out of work, companies are struggling to hire and retain enough workers to keep up with growing demand.
As a result, many companies have increased wages, offered one-time bonuses, or reinforced other benefits, such as flexible hours, to attract workers.
Some companies, like Chipotle Mexican Grill Inc. and Tesla Inc., prices have been raised to help offset rising labor costs, fueling concerns that rapid wage increases could lead to a wage-driven inflationary spiral.
However, opponents argue that that would require wages to continue to rise at a rapid rate year after year. Increasing productivity also helps absorb these inflationary pressures.
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