A recent survey revealed that overall job openings in the private sector climbed to a record high of 6.6 million in March
During the month, the number of employees voluntarily quitting their jobs and taking up new ones rose by 136,000 sequentially to 3.34 million, and the increase was broad-based. The trend, which is reflective of the brightening sentiment among employees, could set the stage for faster wage growth in the long term.
Another positive factor is a sharp fall in layoff rates in March to an all-time low, which can be attributed to non-availability of the right kind of talent for the wages companies offer.
Meanwhile, an uptick in inflationary pressure, typically associated with income growth, might increase the chances of the Federal Reserve tightening its monetary stance further and hiking the key rate two more times this year. The lone factor that could hold back inflation is the muted wage growth.