Fa La La La La: Holiday Labor Costs Rise

Chart of the Week for December 22-28, 2000

The continued tightness of the labor market and strong demand for skilled labor has been a boon to holiday workers such as leaping lords and drumming drummers. According to data released on Wednesday by PNC Advisors, wage inflation rises slightly in the holiday labor market, where total compensation costs have risen about 3% year-over-year.

Pricing power is strongest for musical workers this year. Pipers piping and drummers drumming command 5% higher wages than in 1999. However, the trend is not broad-based across all holiday occupations. Dancing demand has broadened to include nontraditional and lower-paid substitutes such as salsa and swing. As a result, wages held steady for ladies dancing. Largely unskilled and easily recruited, maids a-milking have not been able to negotiate a raise in four years. This mitigates the overall inflationary impact of the report.

Steadiness in other sectors of the holiday market moderated the increase in labor costs. For example, commodity price stability in 1999 kept payments for precious metals and avian livestock (such as French hens) at 1998 levels.

Happy holidays to all, and to all a good night!

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