In February, 4.4 million workers quit their jobs. And while that’s not quite as high as the record 4.5 million people who quit their jobs in November, it’s a pretty sizable number.
All told, as of February, the U.S. labor market had 11.3 million job openings to fill. And companies are now scrambling to address high quit rates by raising wages for existing and prospective workers.
At first glance, that may seem like a good thing. But the Great Resignation could end up hurting everyday consumers for one big reason.
It’s true that in today’s job market, applicants have more negotiating power. That’s a positive thing. But the fact that employers are somewhat backed against a wall on the wage front is also a negative thing.
Companies don’t tend to just absorb the cost of higher wages. Rather, they tend to pass that cost onto consumers.
Recent Comments