Colleges will continue to be hit by high inflation through at least fiscal year 2024, according to a new analysis from Moody’s Investors Service. Analysts predict that increasing costs of labor, food, utilities and construction will spur difficult decisions and force higher education leaders to reprioritize how they allocate resources. Employee compensation will be the most difficult expense to manage in the coming years, as collective bargaining efforts seek to close the gap between wages and an increasing cost of living, analysts said. Employees are turning to work stoppages to secure increases above inflation and advocate for better terms for part-time and nontenured faculty, as well as graduate student workers, the analysis said.
