May 7, 2021
That’s why existing workers are having to work longer hours in attempt to satisfy hot demand, especially in the industry that was hardest hit in the pandemic (leisure and hospitality) …
And that’s why employers are desperately looking to add staff. As you can see in the chart below, job openings on Indeed, the online job board, are up 24% from the pre-pandemic levels.
Back in February 2020, the unemployment rate was 3.5%, near the tightest employment on record. The current unemployment rate is 6.1% (far higher), yet the market for talent looks even tighter than it was pre-pandemic.
This will all translate into higher wages, as employers are forced to raise wages to compete with the government. And wage inflation feeds price inflation.
The wage inflation manufactured by the government (through subsidized unemployment) has already led to record savings levels, hot consumer spending and asset inflation. Big inflation in everyday consumer prices is next.
Keep buying assets (as an inflation hedge). And as we discussed yesterday, among the options to protect buying power, gold is a relative bargain.