The Traderszone Network

Published in TZ Latest News 12 May, 2015 by The TZ Newswire Staff

Wage growth may be on tap as more Americans quit jobs

Americans are becoming more apt to quit their jobs, a government report showed on Tuesday, a sign that a stronger labor market and falling unemployment rate could result in healthier wage growth and inflation. Both wages and inflation tend to follow a rise in the quit rate by a couple of quarters, research from the Chicago Federal Reserve Bank shows. “Once the quit rate gets back to its pre-recession level, we could expect wage growth to be back to pre-recession levels within 6-12 months,” said Jason Faberman, a Chicago Fed researcher who co-authored the study.

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