The US this month hit a 13-year high in consumer prices as wages are going up. This, according to the Special Series of www.npr.org entitled, “Help Wanted: Where are the Workers?” as employers offer increased wages to augment the lack of workers.
Scott Horsley in his article under this series; “Wages Are Going Up — And So Is Inflation. Consumer Prices Have Hit A 13-Year High,” mentions employers boosting of pay to attract workers have impacted the already-high inflation due to some businesses having to raise prices.
This cycle of inflation can be controlled or managed with offshore staffing companies, like Phoenix Virtual Solutions. Phoenix Virtual Solutions can provide as much as 60% savings in labor costs.
The US Labor Department early this month reported that consumer prices were 5.4% in July compared to a year ago. This matches the June inflation rate making it the highest in nearly 13 years. According to the article, the increase was due to the continued rise in costs for food, shelter, energy, and new cars.
This continued increase in wages brings more workers back to the labor force. This rise in labor costs has affected employers like Amazon, the nation’s second-biggest private company as it continues to promote higher wages to attract back workers.
According to the NPR article, “Think Inflation Is Bad Now? Let’s Take A Step Back To The 1970s”, the US could be headed back to the gripping double-digit inflation of the 1970s.
Prices today from gasoline to groceries are rising as the economy recovers from the pandemic recession.
In response, many employers found more efficient ways to operate so that wage increase does not need to be passed on to consumers.
A way to do this is to enhance back office support with onsite workers to manage the increasing labor costs. Offshore companies like Phoenix Virtual Solutions are trending to play an economic saving role as it offers virtual staffing services at around 60% savings in wages.
The trend towards the 1970’s recession can be reversed through the offshore solution from virtual staffing services particularly in healthcare offered by Phoenix Virtual Solutions.
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