An unexpected rise in the US wages has increased concerns on the financial markets as it might lead to a sustainable period of higher inflation rates.
- The level of consumer prices is increasing sharply as the US economy continues to reopen recovering from the COVID-19 pandemic.
- Employment is still low compared to pre-pandemic figures, implying there are many people looking for work and most jobs are in low-wage sectors such as the hospitality industry.
- The increase in wages imply people are unwilling to work at the current wage rates, pushing employers to increase compensation and bonuses.
The average hourly wage in the restaurant industry was $18.09 in May, which is a 14.5% increase from the past 3 months.