US companies warn that growing wages take a bite of their profits, Reuters reports. As a result, investors’ concerns that earnings cuts will be higher than expected next year are increasing.

Few retailers, including Walmart and Macy’s, will report next week, and investors are waiting what they will say about rising wages.

Retailers and restaurants usually have wider base of employees, therefore, higher wages will have bigger impact on them.

Pressure of wages inflation is rising at the moment, when expected earnings-per-share growth pace for S&P 500 companies slowed down to 9% next year. This year it is expected to be 24% due to earnings boost after tax reform.

Last report showed the record high labor pay growth in nine and a half year. Number of unfilled vacancies was 7,14 million, and employers had to raise wages to attract personnel.

Such companies as Amazon.com, McDonald’s, Chipotle Mexican Grill and National Oilwell Varco announced salaries increase recently.