The non-transitory inflation is feeding into wage rates. From Wolf Richter at wolfstreet.com:
One more reason “transitory” and “temporary” have become a silly joke. Even the Fed is backing off promoting it.
By Wolf Richter for WOLF STREET.
The number of people who quit jobs voluntarily – to work for another company that offered higher wages and benefits and a signing bonus; to change careers entirely; to stay home and take care of the kids; to spend more time with their money; or whatever – spiked by another 242,000 people to a record of 4.27 million in August, up 19% from August 2019.
This is what the Bureau of Labor Statistics reported today in its JOLTS report, based on a survey of 21,000 nonfarm business establishments and government entities.
The spike comes amid a very tight job market, with labor shortages cutting into sales and production, and contributing to transportation bottlenecks, amid record job openings that have been spiking for months, and amid aggressive efforts by companies to hire people away from other companies, which creates this spike of quits.