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Will workers seeking higher paying jobs lead to persistent inflation?

Unemployment Benefits
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As inflation remains stubbornly high, it seems workers who once searched for jobs that pay $15 an hour are now looking for $20 an hour.

Searches for jobs paying $20 an hour have grown 35 percent year over year, according to Indeed.

Searches for $25 an hour are also on the rise. This comes as searches related to $15 an hour have dropped 57 percent over the same time.

Indeed economist Ann Elizabeth Konkel said wage growth and inflation are likely influencing this change.

“If an employer is in a dire situation and cannot find workers, they may have to consider raising the wage,” she said. “There also is the option of advertising a signing bonus, using a signing bonus. That is a one-time cost.”

There are some concerns that as pay increases, all of us will pay more. Some economists also worry that higher pay will cause persistent inflation.

When workers lose purchasing power, they ask for higher pay, some economists say. That then causes some companies to raise prices and the loop starts again.

But others like Konkel aren't worried about this happening, with the expectation that inflation will go down.

She says it's also important to not have tunnel vision and only looking at the pay for a job. She recommends considering other benefits like a flexible schedule that may come with the position.