and this post? -- Inflation erodes purchasing power, often necessitating nominal wage increases to maintain real income levels. However, wage growth rarely keeps pace with inflation during periods of economic volatility. As Cafaro (2020) explains, organizations attempt to remain competitive by using market pricing to benchmark compensation, but high inflation complicates this as compensation surveys lag behind actual market movements (pp. 3-5). Companies may provide Cost-of-Living Adjustments (COLAs) or shift toward performance-based bonuses to offset inflation's impact. However, when inflation spikes suddenly, these adjustments often fall short. ERI Economic Research Institute highlights that inflation often increases wage compression, where long-tenured employees earn close to new hires due to rapid pay increases at the entry level (Atchison et al., 2000-2013). 2. Unemployment and Wage Growth Unemployment is inversely related to wage growth. When unemployment is high, the labor supply exceeds demand, reducing workers' bargaining power. This suppresses wage growth, particularly for lowand middle-income workers. Caruth and Handlogten (2001) note that in such labor markets, employers can offer lower wages and still attract talent, affecting compensation structures for years (pp. 72-75). Conversely, low unemployment (as seen pre-COVID-19) fosters wage competition, particularly in high-demand sectors such as tech and healthcare. Employers must offer better wages, signing b