Millions of Americans are lining up for record pay rises in 2023 as companies raise wages – are you due one?
Next year could see some record wage increases as companies raise wages to keep up with inflation, a new survey has found.
According to the survey, several companies plan to increase salary budgets by 4.6 percent next year.
This is the highest expected salary increase in 15 years, partly due to labor shortages and persistently high inflation rates.
The consulting firm Willis Towers Watson discovered in his opinion poll that the salary increases will be the largest since 2007.
In 2022, companies increased salaries by 4.2 percent, which was still significantly high due to inflation.
But it also depended on the intensely competitive hiring environment amid an ongoing labor shortage.
A majority of the 1,560 US employers surveyed said the pay hikes were a result of both inflation and the labor market during the “Great Resignation.”
At the end of September, employers had listed 10.7 million vacancies.
This means that for every unemployed person there are around 1.9 advertised jobs.
Salary increases through job changes
Giving up the job for someone else has proven to be one of the best ways to increase your salary.
Much of the delay in pay rises can be attributed to the tight job market that the US has faced in recent years.
In fact, employees saw a 6.7 percent compound annual wage growth rate when they switched jobs, compared to a 4.9 percent increase for those who didn’t.
According to the survey, most companies not only reported more competitive wages, but also said they had increased workplace flexibility to help with hiring.
Around seven in 10 of the employees surveyed have policies in place to make the workplace more flexible, including offering remote working or relaxed hours.
Half said they are increasing their signup bonuses and long-term incentives.
Inflation is still hitting paychecks
Even amid record-high pay increases, Americans are still feeling the effects of inflation on their paychecks.
If you actually include the adjusted cost of living and consumer prices, average hourly wages for workers fell 2.8 percent in October from the previous month, according to the Labor Department.
So despite the increase in wages, employees have less purchasing power and money to spend than in years past – sometimes putting rent, groceries and other basic needs out of reach.
Here’s how to save money this season
A savings expert recently outlined several ways you can keep your wallet healthy during the holiday season, even if inflation rates remain brutal.
One way to save, according to YouTuber Rachel Cruze, is to adopt a four-gift rule for everyone in your life.
You can also find gift ideas to make yourself here.
Setting a budget for each gift set for the people in your life is essential to keeping your finances on track during the holiday season.
Cruze even suggests that couples without children could ditch gift giving altogether and save more money for the New Year.
Here are the nine states where workers are getting the biggest inflation-dampening wage increases.
The Sun also reported on the Fed’s new rate hike and how millions of Americans will see higher monthly payments.
https://www.the-sun.com/money/6853949/salary-increase-2023-inflation/ Millions of Americans are lining up for record pay rises in 2023 as companies raise wages – are you due one?