The rising wage rate: You’ll do better if you quit

Maybe it’s counterintuitive to lean on our employers. But assuming that most of us probably want to make more money, the implications of what we get going forward are just plain fascinating. For one…

The rising wage rate: You’ll do better if you quit

Maybe it’s counterintuitive to lean on our employers. But assuming that most of us probably want to make more money, the implications of what we get going forward are just plain fascinating.

For one thing, timing is everything. A long time ago, we started an annual upward climb that resumed in the mid-1980s after a 40-year lull, according to an analysis by the Boston Consulting Group. In many cases, this means we should be poised to increase our pay at a faster rate than inflation. A rush of new government and private workers with more education and training probably augurs well, since those are areas with a relatively robust job market. Also: the pressure to boost compensation comes from two factors: higher benefits costs and lower real wages.

However, even as wages rise, worker benefits such as pensions and health insurance premiums will continue to rise faster than wages.

Or, to take another view: we might look at employers and conclude that while their pay goes up faster than our own, it does not necessarily mean that we will keep up.

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