North American CFOs Expect Talent and Labor Costs and Inflation to Increase Substantially in 2022

PRNewswire (12/16/21)

Talent and labor continue to dominate the internal risk concerns of chief financial officers, according to a survey of 130 CFOs across North America by Deloitte. An overwhelming majority (97%) of CFOs agree that talent and labor costs will increase substantially in 2022. Domestic hiring growth expectations also rose—to 5.8% from 4.8% a year ago—while expectations for growth in domestic wages and salaries increased to 5.2% from 4.3% a year ago. Inflation and supply chain ranked as the chief external risk concerns.

Three-quarters of CFOs expect the U.S. Federal Reserve to raise the target interest rate for U.S. federal funds to range between 0.26% and 1.0%. Nearly half (46%) of CFOs expect this to occur in the second quarter of 2022. Seventy-two percent of CFOs rated the current North American economy as good, down from 78% in the third quarter; 45% expect conditions to be better a year out, a decline from 54%.

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