> some arbitrary number called "inflation" vs overall pressure from the labor market They should in the end only care about market pressure, but there is conne

> some arbitrary number called "inflation" vs overall pressure from the labor market They should in the end only care about market pressure, but there is connection between the two. The way I see it, if you are a new hire, companies pay you more to get you, so they stay ahead of the inflation and keep up with market rates. If you want to stay, a company's reluctance to keep up with inflation (and the market) will make it a very hard decision, even if you like the job, the people and the company.