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Workers' pay increasing, but rising prices negate gains

Workers' earnings rising, but higher prices negate gains
Posted at 1:30 PM, Oct 29, 2021
and last updated 2021-10-29 14:30:55-04

A growing number of businesses are reporting they are having to pay workers more.

A new survey from the National Association for Business Economics found a record 58% of businesses had to increase workers' pay this month.

But, experts say this situation will eventually sort itself out.

"In about eight to 10 months, this will all calm down," said Kishore Kulkarni, an economics professor at Metropolitan State University of Denver. "But for this holiday season looks like a season which is unprecedented and that we will have a tremendous demand for labor."

Economists say rising wages can be a double-edged sword.

Employees benefit from making more money, but things end up costing more.