Productivity gains slow, labor costs up
In this article it mentions how the increase in the productivity has had its slowest increase since 1997. The slow increase has casued the labor cost to increase drasticly and is a warning for inflation. Labor cost have gone up for the year to 3.2 percent which is the biggest gain since 2000 when it was 4.2 percent. Analysts think that this could cause a wage inflation, and are worrying. My question is after reading this article, I am not worried about an inflation, but do you think that this increase could cause an inflation??
1 comment:
I would say our economy is at risk for inflation. Between our gas prices and increasing minimum wage standards, personal, along with company costs are skyrocketing. Companies aren't about to take a cut to their profits, and after awhile, the only choice they will be left with is a price jump.
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