The tight labor market already saw wages climbing over the past year, and it sure looks like inflation is kicking that trend into a higher gear. This, of course, adds to preexisting plans from states (after lobbying from unions), including Nevada, to incrementally raise minimum wage this summer.
The private sector is taking matters into their own hands with a supply-demand approach. Target’s starting wages, for example, will (depending upon local job markets) now range from $15 all the way up to $24 per hour. Given that these increases gear themselves toward hourly service positions, younger workers find themselves poised to disproportionally come out ahead while companies compete to fill scheduling gaps. Cyclically, this may only bring more inflation within our current economy.
