07:28
Zeeshan Ahmad Khan
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| unemployment in unites states http://youthcm.com |
Youth Career Management (YCM) reports that: Everyone knows this phenomenon: inflation, representing an increase of the general price level. If the wages in Euros remains the same, while prices rise, workers can buy less. The purchasing power of income has declined. A wage increase intended to offset the effect of inflation do we call price compensation. Price compensation is a percentage increase in salary equal to inflation.
The increase in average output per worker per unit of time worked per hour, called the rise in labor productivity. A first reason is technical development: mechanization and automation. A second cause is division of labor and specialization. Division of labor and specialization are related to the third cause: education.
An increase in labor productivity means that a worker produces more per hour. A wage increase resulting from an increase in labor, we call initial wage increase.
In practice, not the increase in labor productivity of a business or industry as a starting point, but above the national average increase in labor productivity.
In the public sector (the non commercial services such as education and health care) are possibilities for increasing labor productivity is much smaller than in the primary sector (agriculture and fisheries), the secondary sector (industry) and tertiary sector (commercial services). In these latter sectors, it is easier automation and mechanization. The government sector human effort.
The price compensation keeps the purchasing power levels that are if an employee receives a higher wage. The employee can not buy more.
If an employee is on top of the price compensation also receives an initial wage growth, rising purchasing power. Then the employee is buying more.
Wage drift, for example, wage increases through promotion.
Price compensation and initial increases agreed in a collective agreement. The wage drift is not for everyone, for example, if an employer decides to additional employee reward or promotion. Some wage drift are well established as each employee every year, "periodically" gets. If an employee goes to work shorter work called this shortening (ATV).
If your working week is shortened, you as an employee pay raise, in fact, they are paid only in free time.
