Wage Inflation Isn’t Done Yet
Last month we discussed our recruiters’ advice for 2023. One of the hallmark issues in hiring is so-called “wage inflation,” so we were curious to hear your predictions on the subject. We had a solid turnout of 12,547 votes this month!
The overwhelming answer was “Yes!” 37% said they expected wage inflation to continue but at a slower rate while 34% said it would definitely continue. 23% thought it would level off this year. Only 6% think wages will return to “normal” levels.
As many have commented – can you call it “wage inflation” for roles that have been historically underpaid? We’ve been advocating for better pay for technicians for years, warning that the industry will run out of techs unless they make big changes. Whether you call it “wage inflation” or “market value wages,” it’s clear it’s becoming the new normal.
Here are the full results:
Will wage inflation continue in 2023?
- Yes, but it’ll slow down (37%, 4,660 Votes)
- Yes, definitely (34%, 4,302 Votes)
- No, it’ll level off (23%, 2,868 Votes)
- No, they’ll return to pre-pandemic levels (6%, 717 Votes)
Total Voters: 12,547 (December 29, 2022 @ 11:26 pm – No Expiry)
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Some comments from y’all:
- “Can we really call it wage inflation when a copier tech makes less than a bus driver? Or when certain gig work pays more? 40k isn’t cutting it anymore, sorry.”
- “Older techs might be living in homes which have fixed monthly payments. Younger techs will not be living in homes but in apartments. The rents in my city have gone up 33% in one year. Wages must go up if you want to keep technicians.”
- “Wages need to come up to inflation cost or people will jump to a different job/career to make up for loss of income.”
- “I always get a snicker out of this sort of loaded question because I think at this point in time most of us should know that pay increases seldom match inflation anyway. Keeping employee wages down is just one avenue of profit for business owners, large and small.”
- “The government is in control. Once we have no back orders; supply chain fixed; ports able to pull product off ships and plenty of chips for autos, computers, copiers and printers; everything we will see inflation go down. The banks are now watching debt ratios and if we can spend smart, increase savings and starve the bank from credit card income we will see them wanting to lend again and put pressure on the government to lower interest rates. Supply and Demand is a business model that has been used for price structuring. It’s a huge task to keep people working, smart spending and increase savings so we get through this.”
- “Essential workers during and post pandemic highs are not getting the compensation for work that has been performed to keep the companies up and going. I would like to see positions posted for managers in the service industry. As far as the comment of outdated technicians, I don’t believe that is an accurate statement. There are a lot of younger but unskilled technicians coming into this field and quite frankly it is disappointing to see. I don’t see employers hiring technicians with basic electronics skills and it’s been quite sad to see how the companies are dropping their expectations for their front-line representation. Just my opinion.”