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.
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.
How about that, you pay people without requiring work and they don’t work. From Tyler Durden at zerohedge.com:
Something strange is happening in the US economy.
A McDonald’s in Tampa, Florida, offers $50 to show up for a job interview. Even with free money plastered in big, bold black letters on its menu sign, facing a busy roadway, there are reportedly still no takers.
Business Insider spoke with Blake Casper, the franchisee who owns the fast-food restaurant in Tampa, who said the idea to hand out free money is an attempt to secure workers. He said he would do “whatever it takes to hire workers.”
“At this point, if we can’t keep our drive-thrus moving, then I’ll pay $50 for an interview,” said Casper, who owns 60 McDonald’s restaurants across the Tampa-St. Petersburg Metropolitan Area.
Casper said McDonald’s business is booming, but a labor shortage has made workers harder to find. His problems are merely a reflection of a much larger significant labor shortage developing across the country as trillions in Biden stimulus are now incentivizing potential workers not to seek employment but to sit back and chill and collect the next stimmy check for doing absolutely nothing in what is becoming the world’s greatest “under the radar” experiment in Universal Basic Income.