With inflation surging at the fastest pace in 40 years, businesses across the U.S. are extending pay raises and workers are struggling to match wages to consumer prices.

Retailers, airlines and resorts are raising starting salaries to attract new hires, as well as raising base wages company-wide.Some 92% Some companies plan to increase employee compensation this year, up from 85% in 2021, according to pay analysis firm PayScale.

Announcements from US companies confirm trend As U.S. inflation hits official figures 7.9% In February, it hit the highest level since 1982.Federal Reserve Chairman Jay Powell Say Wages “increased in a manner inconsistent with its 2% inflation target” following the central bank’s decision to raise interest rates this month.

The monthly jobs report on Friday will shed new light on the strength of the U.S. labor market and the bargaining power of workers.

“Employers recognize that it is difficult to hire and retain workers right now, and they are raising wages to address these labor shortages,” said Daniel Zhao, senior economist at employment site Glassdoor. “The truth is that workers who are uncomfortable with inflation are now Having more leverage can actually negotiate higher wages.”

The return of workers to the workforce has been slow since the start of the Covid-19 pandemic, with millions of workers already able to Leverage Recruiters are desperate to find new high-paying jobs. But then housing, transportation and food costs began to rise, forcing employers to offer broad-based raises and bonuses to keep workers.

Airlines start announcing staff increases shortage Caused by the Omicron coronavirus wave, forcing thousands of flights to be cancelled over the festive period.

Delta Air Lines Chief Executive Ed Bastian said this month that the airline will raise base salaries by 4% for most of its 75,000 employees starting in May.

“This hard-earned base salary increase . . . is a direct result of the dedication, hard work, and excellence you demonstrate every day,” Bastian wrote in a memo to Delta employees.

After setting the company-wide minimum wage at $15 an hour in June, Southwest this month also raised starting wages to $18 an hour for some of its jobs in Chicago.

Retailers are also offering broad-based raises. Target increases its starting hourly rate from $15 to maximum $24 Workers at its stores, warehouses and headquarters last month. The Minneapolis-based retailer has also reduced the amount of time employees need to work a week to qualify for health benefits from 30 hours to 25 hours.

Vail Resorts is raising the minimum wage to $20 for workers in 37 of its North American mountains. CEO Kirsten Lynch wrote in an email to employees that the decision is part of “a critical shift in the direction of our company with a new strategic focus on all of you.” The average hourly worker will see a 30 percent increase, she said.

The increase is not limited to service personnel. Nationwide Insurance will pay employees at least $21 One hour, starting at $18, starting next month. “What matters most to workers in 2022 are competitive wages, flexibility and the ability to work for a company that reflects their values,” said Nationwide CEO Kirt Walker.

Alison Omens, chief strategy officer at Just Capital, a nonprofit that tracks the impact of businesses on society, said rising wages were the result of both intense competition for workers and employers’ willingness to invest in the workforce in the wake of the upheaval. epidemic.

“Companies that have not historically viewed workers as true value creators are re-examining their workers as a potential source of value,” Omens said, “and this could lead to longer-term wage growth.”

Both Starbucks and Chipotle cited higher labor costs as a reason to raise prices, but Zhao said other companies were more likely to allow wage increases to eat into their profit margins.

Worker advocates say many wages still have less purchasing power than they were before the Covid-19 crisis, even after the raises.only 44% According to PayScale, some organizations plan to give employees more than 4% salary increases, even as inflation nearly doubles.

“We’ve seen wages fall [up and down] Over the past two years,” Omens said. “Half of the people who work in big companies don’t have a living wage, so it’s not a good place to start. Then early in the pandemic, we saw hazard pay, we saw bonuses, and we saw government intervention. The reality of rising rents and rising petrol means wages are falling again. ”