is someone coming spiral Price:%s Y fees? This economists In recent months, they’ve been trying to come up with indicators that dare answer this question. Whether the decision is right or wrong may depend on employment and economic growth. signature Black Rock It has a strong answer. ‘Don’t do that’. “We don’t see a spiral between wages and prices. Companies actually pay less labor per unit of output, so wages can be higher without increasing inflation.” Blackrock’s estimates should be taken into account, not in vain. It is the largest investment management company with assets under management exceeding €8.73 billion, equivalent to the combined GDP of the three largest European economies: Germany, the UK and France.
As the labor war focuses on this tug-of-war, economists begin to speculate. work service Chamber of Commerce Led by economist Joan Ramon Rovira, Barcelona agrees with Blackrock economists and a clear awareness of this is starting to emerge, and the great fear is that consumption could suffer if wages don’t rise enough. For black rock analystsThey conclude, “Because of higher productivity and prices, companies pay less in labor costs per unit of production than before the pandemic. We believe that wages can rise further without increasing inflation and help normalize the labor market,” they conclude.
Wages as measured by the Cost of Employment Index rose 5% in the US last year: the fastest increase since the 1980s (pink line on the chart). Some argue it’s evidence of an overheating job market and a harbinger of consumer price spikes. But higher wages don’t necessarily mean higher inflation. What matters to companies is the actual unit labor cost: how much a company pays workers to produce one unit of output at the selling price of that unit. American workers are 4.5% more productive than before the pandemicAccording to the Labor Department. In fact, wages (red line) have fallen since then, after adjusting for productivity gains (yellow line) and higher prices. This is why experts conclude that wages can increase as productivity reaches its peak.
However situation in Spain this is something different. Some voices point that the marked decline in productivity is real. Jobs in Spain generate significantly less wealth than can be attributed to regulatory filings. But Blackrock experts think it should be taken into account that the labor market is in a recovery phase, where there is more movement between positions than new jobs are created, and this affects the fact that job creation does not generate equivalent GDP growth. As Aecoc chief Ignacio González pointed out this week, economic growth will not recover unless productivity increases for most doomsayers.
Source: Informacion
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