Just last April, the fear of the pandemic made Americans quit their jobs at a record level never seen in 20 years according to apnews.com.
But now, CNN Business says that wages are going up attracting Americans to leave the comfort of welfare support and return to work.
The Associated Press reported that the US government reopening of the economy initiates a significant comeback from the pandemic recession, like shopping, traveling and attendance to sports and entertainment events shows that the country is almost back to the pre-pandemic status.
Although, for the employment requirements to cope-up with the surging economy, companies offer higher wages. This June, the hourly rate rose by 3.6% from last year which was higher than the annual salary increase rate before the pandemic.
According to CNN Business, most investors agree though this increase in hourly rate could trigger inflation as companies increase the prices of their products and services in response to higher labor costs.
For July, 700,000 new jobs are expected to push down the US unemployment rate to 5.7% which is still 6.9 million jobs lower than February of last year.
This increase in hourly earnings makes most investors agree on the risk of inflation that could entail the withdrawal of COVID-19 crisis support by central banks including the Federal Reserve.
Policymakers though still see that increase in inflation is temporary as prices of goods and services will eventually fall once the economy stabilizes.
The federal government is wary that companies start to compensate for their higher staffing costs by increasing the prices of commodities.
CNN Business also cited Nigel Bolton, a co-chief investment officer of BlackRock Fundamental Equities saying that; “Rising wages mean that the transitory period of inflationary pressures could extend into 2022.”
The Associated Press on the other hand reported President Joe Biden’s message on an increase in employment as part of the White House $1.9 trillion economic relief plan enacted in March which aims to support Americans find higher-paying jobs. According to the President, instead of workers competing for few jobs, employers compete to attract workers.
Now how does, offshore virtual healthcare assistant services in the US help employers compete while stabilizing increases in prices due to high wages? The lower cost of virtual assistant services which is almost 60% lower than the US labor standards could give employers a competitive advantage and also alleviates the possibility of an increase in prices due to higher labor costs.
Back-office business process outsourcing companies, like Phoenix Virtual Solutions, a top-tier virtual healthcare assistant provider that focuses primarily on Healthcare Outsourcing Services, not only support the cost-efficiency of the pandemic response in the US but also enable the government to attract more needed onsite workers. This return to onsite jobs backed up by outsourcing virtual assistants lessen the need for an increase in prices.
Higher Wages, More Workers, Phoenix Virtual Solution still offers healthcare outsourcing services and virtual healthcare assistant advantage to control possible inflation.
Find out the Phoenix Virtual Solution Advantage at phoenixvirtualstaff.com
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