C ) Wage pressures will intensify.
Despite a 5.1 % growth in productivity during ‘99's last quarter , increasing competition for skilled , as_well_as unskilled labor will push wage growth over 4 % per annum.
Hiring bonuses , extra perks , and other creative ideas will be used to get a leg_up on competition.
Further complicating the fringe picture will be increasing health care costs.
After moderating during the past two years , soaring drug prices will instigate the largest increase in medical expenses since 1992.
Small businesses will bear the brunt , with an average increase of 15 %.
Most of these increases will be absorbed by employers , afraid of losing workers.