Labor Costs Rising And Unemployment Up As Inflation Surges
According to a recent article from CNBC, worker output (labor productivity) fell 7.5% in the first quarter of 2022 - the fasted rate since 1947. But that’s not where it stops…
Also in the first quarter of this year, labor costs (as measured against productivity) rose 11.6% which is the fastest rise in almost 40 years.
And, on top of these two troublesome indicators, weekly jobless claims rose to 200,000 - which was well above what financial experts had predicted.
Taken together, the numbers underline the inflation surge in the U.S., which has seen prices rise at the fastest level in more than 40 years. Federal Reserve officials on Wednesday announced they would be raising interest rates half a percentage point as part of an ongoing effort to control inflation.