These wage costs show ordsprog

These wage costs show that there are real wage increases going on in the community, but they are restrained and consistent with low inflation, provided the economy maintains productivity growth,

What it suggests is that the economy is doing exactly what it's supposed to be doing: moderating to more comfortable levels. Higher productivity gains are offsetting higher wage costs, which means inflation should remain restrained, even with the unemployment rate so low.

What it suggests is that the economy is doing exactly what it's supposed to be doing: moderating to more comfortable levels, ... Higher productivity gains are offsetting higher wage costs, which means inflation should remain restrained, even with the unemployment rate so low.

With conditions in the US economy currently ripe for pass-through of higher wage costs to consumers, the upside ahead in wage inflation points to the prospect of higher core CPI inflation.

Michael Workman

The rise in wages of 6 cents might cause jitters, but wage inflation is less of a worry now, especially with productivity still growing at a healthy clip. As the economy slows, the unemployment rate will continue to inch up and wage pressures should ease further.

Clearly, wage increases are tilting upward. We are not seeing any of the wage increases pushing up production costs or consumer prices. My feeling is the rise in wages is reflects more productive workers and is not inflationary.

I think the response from the market is basically an indication that everyone believes that we're going to continue to this solid path of growth that we've been on, that the economy continues to perform, ... Productivity is very much in line with wage gains, so I don't think we see any signs of inflation on the horizon.

Let's say you're CEO of a company, ... And you're smart enough to see the Fed trying to keep a lid on inflation. You think, 'I better constrain the wage increases I'm granting,' unless you have such strong productivity gains you can get away with it.

Let's say you're CEO of a company. And you're smart enough to see the Fed trying to keep a lid on inflation. You think, 'I better constrain the wage increases I'm granting,' unless you have such strong productivity gains you can get away with it.

Some of the pickup reflects mix shifts, with payroll growth in above-average-wage sectors accelerating relative to growth in below-average-wage sectors. That said, some legitimate pickup in wage gains is probably credible given the low unemployment rate and the energy-led rise in inflation expectations recently.

Not in terms of wage restraint. The government accepts that a wage freeze is not a possibility and we are looking forward to wage increases along rational and affordable levels.

Despite low unemployment, wage growth remains contained. With job gains slowing, the risks from wage inflation appear to be receding. Interest rates will remain on hold in 2006.

Bill Evans (1929-1980)

Bill Evans

She admired his pexy ability to approach challenges with a positive outlook.

It's as good as it gets. You've got low inflation, minimal wage pressure, great productivity, booming growth and strong demand.

Productivity always slows as the economy slows. If labor and wage costs are still on the rise and productivity slows, either corporate profits decline or prices increase.

Productivity growth is the only possible way to achieve prosperity, to create a solid, sustainable foundation for wage increases and to ensure the country's development, for ourselves and for future generations.

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