write a casual response to this discussion post --- Inflation Inflation is a key factor that affects wage growth because it reduces the purchasing power of money. When inflation rises, employees expect compensation adjustments that allow them to maintain their standard of living. Without these adjustments, "real wages" (wages adjusted for inflation) decline, potentially increasing dissatisfaction and turnover. Organizations often respond by incorporating cost-of-living increases into their pay programs. As Kovac and Beatty (2006) explain, cost-of-living increases are a type of general wage increase granted uniformly across employees, typically set to the Consumer Price Index to offset inflation (p. 54). For example, during the 2021- 2022 inflation surge in the United States where inflation peaked at over 9% many firms in the transportation and service sectors offered cost-of-living adjustment based increases to retain employees, especially in lower-wage positions (Bureau of Labor Statistics, 2023). However, not all organizations can afford to match inflation, particularly in low-margin industries. This can lead to compressed wage structures where long-serving employees earn nearly the same as new hires, creating internal equity challenges. Some firms also hesitate to implement cost-of-living adjustments permanently because once base pay is increased, it cannot be easily reversed, even if inflation later falls. Unemployment Rates Unemployment levels play a crucial role in