ADP reports 6.5% wage growth increase for Maryland

MARYLAND – As prices creep up the demand to make more grows.

That’s exactly what’s in store for Marylanders with a 6.5% wage growth for the state for the month of October. “Labor markets are generating stronger wage growth for many Maryland workers but the real question is whether a stronger wage growth is keeping up with higher inflation,” says Bill Chambers, President, and CEO of the Salisbury Chamber of Commerce.

With this wage growth increase what’s actually happening is a domino effect. “Companies and employers are trying to catch up to the rising prices, the employees are saying hey, everything is expensive, I’m not going to work with you all unless you meet my demands in terms of proper wage,” says Professor Memo Diriker, at Salisbury University. “It’s a double-edged sword, we want workers to be able to have a wage that helps support pay their rent and take care of their family, but at the same time there is a reaction to that,” says Chambers.

In Dorchester County, Bill Christopher with the Chamber of Commerce says businesses are hurting. “The crunch of two things one they got to pay more than they want for the staff, and they’re still hard to find and keep. It’s a problem that’s going to hurt our businesses and has been for a while,” says Bill Christopher, President of the Dorchester Chamber of Commerce.

Overall, Christopher says for the state of Maryland – this information looks to be normal. “Maryland in October has been trending where it’s been for the last several months in terms of the percentages and we’ll probably finish out the year in the same area,” says Christopher.

Now the call to policymakers for change, because if not officials see things taking a turn for the worse. “The hope of the policy makers is that the demand for products will go down because they’re expensive, rather than wages catch up so we can afford them, unfortunately until we reach that point people keep demanding and getting higher wages, and at some point that is a recipe for a recession,” says Professor Diriker.

Now the question is how long would the recession be and how bad? Professor Diriker says he is optimistic, expecting about 2 years until the demands for goods and services to come down. Bill Chambers believes this will be considered in the general assembly with minimum wage going up as high as $20 dollars, which he calls a grave concern.

The ADP wage growth study can be found here.

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