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
Will a gas tax help lower prices at the pump?
May 14, 2026
WCPO recently reported on Kentucky and Indiana’s steps to combat surging gas prices, cutting and suspending state gas taxes, respectively. UC economist Michael Jones explained the impact on Cincinnati.
Is a colonoscopy painful?
May 13, 2026
The University of Cincinnati's Susan Kais, MD, assistant professor of clinical medicine in the Division of Gastroenterology and Hepatology in the College of Medicine and UC Health gastroenterologist, recently appeared on the ARC Cincinnati morning program on Local 12/WKRC-TV to answer common questions from viewers about colonoscopies and to dispel myths.
Telescope captures information about lonely Jupiter-like gas giant
May 13, 2026
Science outlets highlight a University of Cincinnati student's collaborative discoveries about an exoplanet 901 light years away.