Figure 6: Percentage point labour compensation contribution to inflation (y/y) by recession/recovery
Percentage change year-over-year by quarter, beginning one quarter before recession.
Red line indicates beginning of recession.
Figure 6: Line chart of the contribution of labour compensation to inflation in three recessions: 1990-91, the Global Financial crisis, and the pandemic. Values are the percentage change year-over-year by quarter from one quarter before the recession to ten quarters after. Labour compensation has been much less important than profits in explaining inflation in each of these recessionary periods.
