NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Inflation is having an impact on local businesses, especially as they compete for workforce.
"The inflation effect on wages is a real thing," said Hutchinson/Reno County Chamber of Commerce CEO Debra Teufel. "Every employer basically said they had to increase wages last year, just to keep up with inflation. Some of these numbers way outpace inflation. Thirty-two percent increased wages less than five percent. Thirty-six percent said they were increasing them six to ten percent, so that's, I would say, inflation adjusted. Then, you've got another 32% that increased wages more than 11%."
It's not all inflation, though, it is about keeping people working closer to home.
"Some of that is inflation effect, but some of that goes back to employers that were listening to the wage outlooks that Jeremy Hill provided at our forum last year, showed that Reno County wages were significantly lagging the state of Kansas and the nation. It was one of the things that is holding us back and we're not just lagging Kansas. When we are in, basically, the labor market with Wichita, we were lagging the Sedgwick County averages by somewhere between 11 to 15%."
That is a big piece of what will slow future growth, especially in an environment where wages will have to continue to keep up with inflation, even as the rate begins to slow.
"The recognition by the employers is, in order to attract a workforce, we've got to keep up," Teufel said. "It was one of the things that Jeremy [Hill, from Wichita State University] hammered home at outlook conference was, we don't have a labor issue in our state. We have a wage issue."
According to Wichita State, the employment outlook for Wichita is strong despite the tight labor conditions. The 2024 forecast is 0.7%, or almost 2,300 net new jobs.
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