Rising Wages and Inflation
As the best staffing agency New York has to offer we have seen the dramatic impact
that inflation has had on wages and hiring directly. During the pandemic, the world saw a
dramatic increase in the number of goods sold. Simply put people started hoarding various
items such as toilet paper, paper towels, canned goods, vitamins, etc. The fear was strong, and
the general population needed to control what they felt was controllable. The rise in goods
purchased directly contributed to a large spike in inflation. Companies couldn’t keep up with
demand therefore prices had to increase.
With companies being unable to keep up with demand due to lack of shipments,
constant delays, etc. the same was felt directly on the shortage of workers. Once
unemployment benefits began to run out most companies felt that they would have a rush of
hourly employees returning to work. When that didn’t happen, companies were forced to
increase wages in hopes of enticing employees back to work. The increase in wages was felt
across the board from hourly employees up through executives. The hope has been that
individuals would start to disperse their money elsewhere onto various services so that it would
offset the enormous inflation in the cost of goods. However, in order to help offset such a hike
in prices the market would need to be flooded with a demand for services over goods. In fact,
inflation has not risen this high since 1982.
If you are curious how the rise in wages has impacted inflation, we would be happy to
help advise you as the best staffing agency New York has to offer. We understand how difficult
this post-pandemic world of hiring can be and we are here to walk you through the process.
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