In a sign that greater economic power is being exercised by workers, wages for U.S. workers grew by 1.5% from July-September, the largest increase in at least 20 years. The Labor Department reported that the value of benefits also rose by nearly 1%, over double the preceding three month period. From AP's report:
"Workers have gained the upper hand in the job market for the first time in at least two decades, and they are commanding higher pay, more benefits, and other perks like flexible work hours. With more jobs available than there are unemployed people, government data shows, businesses have been forced to work harder to attract staff.
Higher inflation is eating away at some of the wage increases, but in recent months overall pay has kept up with rising prices. The 1.5% increase in wages and salaries in the third quarter is ahead of the 1.2% increase in inflation during that period, economists said."
Keeping inflation in check will be the key to workers seeing the benefits of their growing economic leverage. A surge in spending resulting from economies recovering from the pandemic, and from stimulus money and other Federal programs, has also produced more jobs than workers applying for them.
