Debate: “Wage Inflation Will Increase for the Foreseeable Future Due to a Tight Supply of Workers”
Featuring Jeremie Capron, Director of Research and Managing Partner at Robo Global, and Matthew Bartolini, Managing Director, Head of SPDR Americas Research for State Street Global.
While there was a bit less of a “war” then usual, there were some relevant comments about the future of jobs and how it would affect inflation. For example, Jeremie highlighted how every time we have gone through a transition – agriculture, tech etc. – we came out the other side wealthier and with more jobs – this is a significant positive that is rather inflation neutral.
However, Matt noted a number of factors to believe we are in a new paradigm that may keep wage inflation high inclusive of the fact that nearly 30% of work spent is now done remotely, providing workers the flexibility and therefore edge to move more easily and the fact that the minimum wage has not kept up with inflation placing further upward pressure as the low end of wages gets pushed higher through regulation.
Following up on our prior episode, the fact that the world is aging will result in less population to fill jobs which may keep pressures on wage inflation for the foreseeable future – hopefully the productivity and efficiency Jeremie speaks to on this episode allows for wealth to continue to grow quicker then the inflation this may produce.
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