2006-06-14 10:48:19 · 5 answers · asked by Anonymous in Business & Finance ➔ Careers & Employment
Because many employers don't adjust salaries for inflation. If you find this is happening to you, you should consult your HR department. Bring in some statistics to prove your case.
2006-06-14 10:51:52 · answer #1 · answered by Jetgirly 6 · 0⤊ 0⤋
It is called "sticky wages". During inflationary periods generally inflation is underestimated by businesses and firms especially at the retail levels. As prices are delayed in rising, wages are also delayed and usually delayed the most. Although sticky wages cause employers to increase employment which is a positive because the real wages is declining it becomes cheaper for firms to hire more workers, and employment rises. If wages were not sticky periods of excessive economic growth (growth above full employment GDP) would not happen.
2006-06-14 17:59:16 · answer #2 · answered by Economics Guy 3 · 0⤊ 0⤋
Don't worry about it. If prices get too high, no one will be able to afford the products and their prices will come back down.
2006-06-14 17:52:38 · answer #3 · answered by Neerdowellian 6 · 0⤊ 0⤋
Its called inflation, cost of manufacture and transportation are up, but no one is making any more money, because everyones costs are up.
2006-06-14 17:52:23 · answer #4 · answered by Greg W 2 · 0⤊ 0⤋
It's called economy.
2006-06-14 17:59:28 · answer #5 · answered by silver 5 · 0⤊ 0⤋