From a Goldman Sachs note on Thursday afternoon US time - are unconcerned about unionized workers getting wage hikes, saying these are a laggin indicator:
- Recent strikes and reports of unions winning or demanding large wage increases have fueled concerns that wage growth could reaccelerate and boost inflation.
- We instead see the recent wage gains for union workers as a lagging indicator—the final echo of last year's inflation surge.
- while recent large wage gains for union workers will directly boost overall wage growth a bit, the impact should be small because the unionized share of the workforce is modest
- we expect overall wage growth to continue to decelerate toward 3.5%
Shawn Fain UAW President speaks on UAW strike.