US companies offering record-high raises to retain workers, keeping pressure on inflation

The extremely tight labor market has allowed workers to quit their jobs in favor of better wages, working conditions and hours – a new trend dubbed the "Great Resignation." The Labor Department reported last month that employers had 10.3 million positions open at the end of October, meaning there are roughly 1.7 posted jobs for every unemployed worker.

The concern among some economists is that higher wages are keeping pressure on stubbornly high inflation, which climbed 7.1% in November from the previous year, according to the Labor Department. "The labor market remains tight and overheated," said Joe Brusuelas, RSM chief economist. "Competition for a labor inside a workforce that is now shrinking supports higher wage gains, which is feeding into elevated inflation across the economy and inside the service sector."

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