SCSU’s Banaian; Wages Not Going Up at the Same Pace as Inflation
Inflation continues to be in factor for Central Minnesotans with so many products and services going up in price. St. Cloud State Economist and Dean, School of Public Affairs King Banaian indicates the latest ADP report, which processes paychecks, shows wages went up 7.7% and Banaian says inflation is up 8%. He says this shows Americans are still losing a bit of their spending power.
Banaian explains those working in the bar/restaurant and hospitality industry were the first to have their savings run out and he predicts those working in manufacturing will be next. He says the professional sector which includes education, healthcare, and IT, may still be doing fine but other areas are not. Banaian explains the number of job openings continue to go up with 10.7 million jobs in the United States with less than 6 million people actively looking for work.
I asked King if there is a work ethic problem in this country. He says he doesn't believe that is the case. Banaian says there are some young people who find a way to survive by playing video games instead of working a typical 9 to 5 job. He says that is playing a role in the worker shortage along with baby boomers retiring and less women in the work force because of day care costs or needing to be care givers to older adults.
if you'd like to listen to my conversation with King Banaian it is available below.
Restaurants the St. Cloud Area Lost in 2022