Latest News by Industry
• Average hourly wages rose 4.7% in December from a year earlier
• Inflation rose 4.9% in December 2021 compared to the last year
U.S. labor costs rose 4%—highest increase since 2001—as employers spent more on wages and benefits last year amid tight labor market and accelerating inflation.
The Labor Department said on Friday the U.S. employment-cost index—quarterly measure of wages and benefits paid by employees—rose the highest in the fourth-quarter in two decades.
Inflation rose 4.9% in December 2021 compared to the last year, while household spending fell 0.6% last month, the Commerce Department said.
Average hourly wages rose 4.7% in December from a year earlier, but is not enough compared with the rising inflation, which is the fastest pace in nearly four decades.
Rising wages
JPMorgan Chase & Co (NYSE: JPM) said earlier this month that its expenses would rise 8% in 2022, partially due to labor costs.
McDonald’s Corp. (NYSE: MCD) also increased wages more than 10% at U.S. restaurants due to which it raised menu prices. The fast-food chain said that U.S. menu prices increased about 6% last year due to increase in labor, food and packaging costs.
The airlines industry was also impacted by rising labor costs as manufacturers and suppliers saw labor costs climb 7% in the third quarter.
Picture Credits: Getty Images