«That will lead to high unemployment, because people will call for large
real wage rises.»
Not exact matches
Instead, of
rising wages, we've got the lowest
real wage growth rate in 40 years:
Rising commodity prices and international trade also put a wedge between producers» prices (what firms receive when they sell the goods and services they produce — this is the price firms use to calculate the
real wage that tracks productivity) and consumer prices (what consumers pay to buy stuff — the lower they are, the greater workers» purchasing power).
Canada's minimum
wage hasn't
risen in
real terms since 1975, according to Statistics Canada.
These are not a surprise in the context of multiple structural headwinds including lackluster
real wage growth,
rising healthcare expenditures and unequal distribution of economic gains.»
Inflation has been boosted by the stabilization of energy prices, consecutive years of 2 % (and above)
real gross domestic product (GDP) growth and the continued
rise of
wage inflation.
This probably occurred because the big
wage increases in 2010 - 11, which were counterbalanced by the sharp drop in
real interest rates during that period, were finally able to take effect in 2012 when
real interest rates
rose sharply once again.
Until business learns that labor won't accept
wage increases passed on to consumers, raising inflation, negating
real gains, inflation must be allowed to
rise.
In any case, smaller stocks will probably be most vulnerable to earnings shortfalls in the coming year or two, stemming from either slower economic growth,
rising real wage costs in excess of productivity growth, or most likely, both.
France's Socialist government announced the first
real - terms increase in the minimum
wage for six years on Tuesday, but limited the
rise to 0.6 percentage points above inflation as it sought to balance election promises with fears of damaging employment.
In developed markets, we have seen a
rise in populism because some voters see themselves as disenfranchised, and there has been a lack of
real wage growth, causing
real political upheavals.
Matthew Gardner, Chief Economist at Windermere
Real Estate, covering Seattle, says, «Our strong
wage growth is still supporting
rising home prices, which when combined with the historically low number of homes for sale in Seattle, gives home flippers substantial returns on their investments.
And you know bonds have
risen in value and
real estates gone back up to bubble levels but there hasn't been a lot of
real world inflation and certainly no
wage inflation.
First quarter hourly compensation
rose 3.4 % after a 2.4 % gain in the previous quarter, but
real hourly compensation still fell 0.1 % after a 0.8 % decline in the fourth quarter, showing
wage growth is still being outpaced by inflation.
The
real issue is I see little hope that the reimbursement will continue to
rise as fast as food and
wage inflation, particularly in higher cost metropolitan areas.
«The government's rebranding of the minimum
wage to the national living
wage hasn't dealt with the
real problems of low pay and
rising cost of living,» said Corbyn.
Moreover, the «
real» living
wage espoused by Labour can also
rise if the government cuts the help it gives working families, for example through tax credits.
Osborne's announcement this week that he wants to see the minimum
wage rise to # 7 is the first
real sign that the Conservative party is beginning to understand the difficulties they face at the next election and the steps they need to take to counter them.
Education ranked as fifth most resilient workforce throughout the recession, with the aggregate
wage bill
rising 14 % in
real terms since 2002 to # 41bn — driven by a surge in non-teaching or unqualified positions in schools
Regardless, there are many catalysts: a tight labor market,
wage growth picking up, a stock market at or near record highs, housing values
rising quickly, high commercial
real estate prices, low cap rates and narrow credit spreads.