Evasion of wages How does inflation force workers to change jobs? Hamed Wahidi/ author of the publication Many workers may work for months or more on wages whose purchasing power is declining. In such a situation, one of the ways to compensate for this decrease in purchasing power is to find a new job with a higher salary. The opinion piece "On How Workers Keep Up With Inflation" by Hassan Afrauzi, Anders Blanco, Anders Darnick, and Eric Hurst explores this issue. The authors seek to explain why, during periods of rising inflation, the number of jobs may simultaneously increase, more workers will change jobs, and real wages remain depressed despite the apparent boom in the labor market. When current wages do not match the new economic conditions, changing employers can be a way to achieve an increase in income. Of course, this result is not certain and not all employees have the same opportunity to change jobs. The amount of demand for a person's skills, the terms of the contract, the costs of the job search, the economic situation of the companies and the possibility to access new opportunities influence his decision. However, if such behavior were to spread among large numbers of workers, it could increase the flow of labor displacement throughout the economy. If the rate of job opportunities increases compared to the number of unemployed, it can be thought that companies face intense competition for hiring and the bargaining power of the labor force increases. But if some of these opportunities are created due to workers leaving their previous jobs, the picture is more complex. The labor market may still seem active in terms of the number of job opportunities, but many workers will have to look for new work in order to maintain their standard of living. The purpose of the article is to present a mechanism showing that inflation can be one of the factors that explain these developments. The most important message of the article is that one should not rely on one index to assess the state of the labor market. The number of vacancies, the unemployment rate and wage growth each represent a part of reality, but none of them provide a complete picture of the state of workers and companies.

Evasion of wages How does inflation force workers to change jobs? Hamed Wahidi/ author of the publication Many workers may work for months or more on wages whose purchasing power is declining. In such a situation, one of the ways to compensate for this decrease in purchasing power is to find a new job with a higher salary. The opinion piece "On How Workers Keep Up With Inflation" by Hassan Afrauzi, Anders Blanco, Anders Darnick, and Eric Hurst explores this issue. The authors seek to explain why, during periods of rising inflation, the number of jobs may simultaneously increase, more workers will change jobs, and real wages remain depressed despite the apparent boom in the labor market. When current wages do not match the new economic conditions, changing employers can be a way to achieve an increase in income. Of course, this result is not certain and not all employees have the same opportunity to change jobs. The amount of demand for a person's skills, the terms of the contract, the costs of the job search, the economic situation of the companies and the possibility to access new opportunities influence his decision. However, if such behavior were to spread among large numbers of workers, it could increase the flow of labor displacement throughout the economy. If the rate of job opportunities increases compared to the number of unemployed, it can be thought that companies face intense competition for hiring and the bargaining power of the labor force increases. But if some of these opportunities are created due to workers leaving their previous jobs, the picture is more complex. The labor market may still seem active in terms of the number of job opportunities, but many workers will have to look for new work in order to maintain their standard of living. The purpose of the article is to present a mechanism showing that inflation can be one of the factors that explain these developments. The most important message of the article is that one should not rely on one index to assess the state of the labor market. The number of vacancies, the unemployment rate and wage growth each represent a part of reality, but none of them provide a complete picture of the state of workers and companies.