Inflation, Jobs, and Interest Rates

By Ed Gordon, Guest Bloggers / Latest news headlines report that stocks are crashing. The markets are focused on further interest rate increases as the Federal Reserve responds to inflation. But to what extent is inflation triggered by surging jobs hiring and a falling unemployment rate? Overall businesses are still experiencing great difficulty in hiring skilled workers. Massive retirements and COVID-19 are being identified as the main culprits. However, reports from research groups and trade/professional associations are identifying skilled worker deficits as the chief cause of workforce shortages and wage inflation. As Harvard economist Gabriel Chodorow-Reich stated, “companies will keep bidding up pay as they compete for employees.” READ FULL ARTICLE>>