After returning from an investor conference and speaking with companies across the economic spectrum, one theme emerged: employees are costing more and are harder to retain. Wage growth especially in low wage industries has been growing at a rapid pace and this is putting enormous pressure on low margin businesses with a high percentage of low to middle income workers. The real world effects of this trend was best exemplified by a C suite executive who mentioned that one of their medical clinics in Northern California had a large portion of their staff poached by a CAR WASH. When car washes are taking employees from medical clinics, we have an impending wage inflation issue in this country.

Andrew Leaf, Analyst

Source: The WSJ’s Daily Shot
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