Economics
Tightest U.S. Job Market Since 1950s Set to Drive Inflation
- Jefferies says labor, wage pressures unlikely to ease in 2022
- Faster pace of tapering is needed to tame inflation: Markowska
Photographer: Olivier Douliery/AFP/Getty Images
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Fueled by a persistent shortage of available workers, wage pressures will take over as the dominant driver of U.S. inflation in the second half of next year, according to Jefferies Group LLC.
“We believe the U.S. is entering the tightest labor market conditions since the 1950s,” Aneta Markowska, chief financial economist at Jefferies, wrote in a note Monday. As a result, wage pressures are unlikely to ease next year, keeping inflation elevated even as supply chain bottlenecks abate.