Company employees are getting pay raises just for staying on the job rather than moving on to other endeavors.

Wages for workers who stayed at their jobs were up 5.5% in November from a year earlier, averaged over 12 months, according to the Federal Reserve Bank of Atlanta. That was up from 3.7% annual growth in January 2022 and the highest increase in 25 years of record-keeping.

It’s also the case that new hires are getting bigger signing bonuses, initial salaries, and more perks for joining the company.

However, this claim by The Wall Street Journal (at the link above) is mostly backwards in the present environment:

Can he?

Federal Reserve Chair Jerome Powell said in a speech last Wednesday that the overheated labor market needs to cool more for the Fed to be confident inflation could decrease toward its 2% goal. He said the biggest remaining barrier to taming inflation is a worker shortage, which is driving up wages and, in turn, the cost of goods and services.
“The labor market … shows only tentative signs of rebalancing, and wage growth remains well above levels that would be consistent with 2% inflation,” Powell said. “We want wages to go up strongly, but they’ve got to go up at a level that is consistent with 2% inflation over time.”

This time for the Republic of China’s Foxconn, which among other things, assembles iPhones in a People’s Republic of China factory in Zhengzhou.

In Foxconn’s main Zhengzhou facility, the world’s biggest assembly site for Apple Inc’s iPhones, hundreds of thousands of workers have been placed under a closed-loop system for almost two weeks. They are largely shut off from the outside world, allowed only to move between their dorms or homes and the production lines.

The mainland Chinese workers are causing their own problems for Foxconn, also.