Morning Brew: Employee recruiting, retention affected by inflation
UC economist says workers are prioritizing flexibility
A host of factors, namely the war in Ukraine and recurring supply chain shortages, have contributed to inflation reaching a 40-year high in the United States.
Per the Bureau of Labor Statistics (BLS), the Consumer Price Index climbed 7.9% in February, with the price of food, fuel and shelter accounting for the largest share of the increase in average prices paid for goods and services. According to the BLS’s latest jobs report, inflation is outpacing wages by around 3%.
Michael Jones, PhD, associate professor-educator of economics at the University of Cincinnati Carl H. Lindner College of Business.
“There is a gap [in] inflation right now,” Michael Jones, PhD, associate professor-educator of economics at the University of Cincinnati Carl H. Lindner College of Business, told Morning Brew. “It’s at just under 8%. And then wages are around 5%. So, [a] pretty big gap.”
Companies have attempted to combat inflation by increasing pay, but inflation is putting a dent into the effectiveness of those increases. And with gas prices remaining high, permitting employees to work from home could be a more enticing recruitment tool than wage increases.
“Workers are prioritizing [remote work], even over wages, because they have some flexibility,” Jones said. “They can work in Ohio, for example, while maybe enjoying that New York salary or California salary. So what you’re seeing is that companies are competing on other benefits and packages.”
Impact Lives Here
The University of Cincinnati is leading public urban universities into a new era of innovation and impact. Our faculty, staff and students are saving lives, changing outcomes and bending the future in our city's direction. Next Lives Here.
Related Stories
Lindner graduate students shine in international simulation competition
November 10, 2025
Five master’s of information systems (MS IS) students took home fifth place out of 23 universities at the International ERPsim Competition hosted by HEC Montreal during the recent spring semester. The competition tests students’ knowledge of enterprise resource planning (ERP) software and their ability to adapt to challenging business problems.
Sugar overload killing hearts
November 10, 2025
Two in five people will be told they have diabetes during their lifetime. And people who have diabetes are twice as likely to develop heart disease. One of the deadliest dangers? Diabetic cardiomyopathy. But groundbreaking University of Cincinnati research hopes to stop and even reverse the damage before it’s too late.
Is going nuclear the solution to Ohio’s energy costs?
November 10, 2025
The Ohio Capital Journal recently reported that as energy prices continue to climb, economists are weighing the benefits of going nuclear to curb costs. The publication dove into a Scioto Analysis survey of 18 economists to weigh the pros and cons of nuclear energy. One economist featured was Iryna Topolyan, PhD, professor of economics at the Carl H. Lindner College of Business.