Inflation and labour shortages will feed into wages

Higher consumer price inflation is yet to feed into labour costs but rising demand for labour is set to change this

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In this article

  • Real ULCs eased in 2021
  • Yet wage pressures are building
  • Labour shortages raise chance of inflation fuelling wages
  • Relatively low US participation
  • Employment and participation growing faster in euro-area
  • Outlook

What is this?

This article is from the Oxford Analytica Daily Brief, which analyses geopolitical, economic, social, business and industrial developments on a global and regional basis, providing clients with timely, authoritative analysis every business day of the year. Find out more about the Oxford Analytica Daily Brief, or request a trial.