this post was submitted on 27 Dec 2023
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[–] [email protected] 1 points 11 months ago

The thing is, while interest rates and wages are in some ways connected, it's a far less direct connection than simply taking a look at the overall labor market, competitive pay rates for your skills, and going job hunting when yours isn't keeping up.

Regardless of interest rates, the labor market is tight right now, which means better offers from those companies willing to compete for qualified workers, end of story.

Honestly, while I'm no economist, I would think that most companies aren't borrowing in order to cover payroll, so while interest rates may affect their decisions in regards to capital investments, they only have a tangential effect on hiring and compensation offers. In fact if anything, maybe a high interest rate might dissuade a company from capital investment and steer them toward a focus on staffing.