Fed's Controlled Demolition To Leave Workers With Less Bargaining Power

Last Wednesday the Federal Reserve admitted that unemployment will likely rise over the next two years due to the stepped-up pace of interest-rate hikes designed to tame soaring prices. The expected result? Employees will be left in a worse-off bargaining position as the number of open positions evaporates – along with copious benefits being showered upon workers amid the ongoing (but soon to change) shortage, Bloomberg reports.

Last week Fed Chair Jerome Powell said there’s a “real imbalance” in wage bargaining in favor of employees due to the high level of job vacancies – a dynamic that’s about to change, perhaps quickly.

The tightening will put employee compensation – and perks – to the test.

Wages aren’t the only thing workers are bargaining for. After decades in which they held almost all the cards, employers are having to

Keep reading this article on Zero Hedge - Blog.

Leave a Reply