KKR’s Henry McVeigh joins Barron’s Roundtable to discuss GDP data showing slowing economic growth and inflation.
There is always high inflation As the prices of everyday goods continue to rise, more Americans are being encouraged to take on side jobs.
The Labor Department reported Friday that about 8.13 million people are employed. multiple jobs January – up from 7.87 million a year ago. Collectively, they make up about 5.1% of the total U.S. workforce, up from his 5% just a year ago.
Americans are increasingly likely to hold multiple jobs as they continue to face high inflation that rapidly erodes purchasing power.
In fact, the government reported last month that the average hourly wage for all employees in December was $11.10, down 2.89% from $11.43 in January 2021, just before the inflation crisis began.
The number of well-paying jobs is decreasing
A window display at the Vacation Supply Company on Collins Avenue in Miami Beach, Florida. (Photo by Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
By this measure, the typical American worker is worse off today than two years ago, even though nominal wages are rising at the fastest pace in years.
Inflation is putting severe economic pressure on most American households, forcing them to pay for necessities like food and rent. The burden falls disproportionately on low-income Americans, whose paychecks are already tight and are highly exposed to price fluctuations.
Americans in these states will get a pay raise this year
Inflation has fallen significantly from its peak of 9.1% in June 2022, but remains well above the Federal Reserve’s 2% target. Moreover, compared to January 2021, prices have increased by a whopping 17.6%.
The cost of necessities like food, gasoline, rent, and child care is still much higher than it was just a year ago. Chronically high prices are forcing Americans to spend about $650 more a month than they did two years ago, according to a recent estimate from Moody’s Analytics.
Gas prices posted at gas stations in Los Angeles, CA on July 19, 2022. (Frederick J. Brown/AFP via Getty Images/Getty Images)
Food prices have increased 33.7% since the beginning of 2021, and shelter costs have increased 18.7%, according to FOX Business calculations. Meanwhile, energy prices have increased by 32.8%.
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“People are experiencing high prices. If you think about basic necessities like bread, milk, eggs and different types of meat, prices are significantly higher than they were before the pandemic.” said Federal Reserve Chairman Jerome Powell in an interview Sunday. 60 minutes. ”
As spending on everyday items increases, Americans are on fire Funded by savings, more and more people are turning to credit cards to cover basic expenses.
