'They’ll be entering a job market that’s eager to have them': Will record-high inflation push more people to go back to work?

Labor costs are driving up inflation. But will inflation also drive more people back to the workforce?

And although the increase in hourly pay over the past 12 months — rising 5.5% as employers upped the ante to lure more job candidates — was the largest gain since the early 1980s, it was still significantly less than the annual rate of inflation.Everything from rent to food is getting more expensive. “These increased costs may help us get more people back into the labor force,” said Ron Hetrick, senior economist at Emsi Burning Glass, a labor-market analysis firm.

Instead, people are moving “from the toughest jobs to more attractive jobs,” Kashkari said, saying child care and long-haul truck driving are jobs that are more difficult to fill. — Elise Gould, senior economist at the Economic Policy Institute, a progressive think tank Not everyone agrees that the U.S. workforce is disengaged, and some say the relationship between inflation and the desire to work is complicated. “I understand why many people think that folks are sitting at home on the bench,” said Ben Wigert, director of research and strategy for Gallup’s workplace management practice.

Rising rates may cause people to find better paid work, he added. “For people struggling to make ends meet, it is certainly possible that inflation could push unemployed individuals into the labor market, or cause employed individuals to take another job.” “‘Typically, economists would say that inflation does not have a strong effect on long-term unemployment because wages adjust with inflation in the long run.’”

Not understanding. Isn’t our unemployment rate the lowest it’s been in a long time?

Are these employers ready to pay a premium to get employees in the door. Y’all make employees sound like hostages here Workers have the power here. These companies have overhead that they can’t keep up with after inflation without workers to increase productivity.

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'They’ll be entering a job market that’s eager to have them': Will record-high inflation encourage more people to go back to work?Will inflation push more people to go back to work? ‘They’ll be entering a job market that’s eager to have them,’ one economist says Wtf you mean like a second job? Or older people being pushed to work who had previously retired?
Source: MarketWatch - 🏆 3. / 97 Read more »