Wage growth expectations rise to a 50-year high
|Summary
The probability of high wage growth for next year was 49% in Q4-2021, as competition for workers and rising living costs continued to put upward pressure on wages. In data going back to 1968, this marks the highest likelihood to date. The probability of high wage growth has remained elevated for more than four years, but the pandemic-induced decline in labor supply and the battle against rising inflation led to a sharp increase last year. Although a large increase in the Employment Compensation Index has spooked some fears of a wage-price spiral, structural differences in the economy today and tightening monetary policy should hold off a 1970s-like scenario.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.