Thursday, July 27, 2006

Pay Raises Vs. Inflation...

A few months back I mentioned that I received a pay raise of only 3%. I pretty much wined about it actually. I see that I may not be the only one that's received a raise that's not beating inflation. The associated press mentions that pay raises are struggling to outpace inflation this year. A recent survey shows that U.S. employers are planning to increase base salaries by 3.7%, which is a bit higher than last years 3.6%. As of right now the projections for inflation are 4.7% this year. That's more than 1 percentage point over last years 3.4%. And it looks like companies will be relying less on pay raises, and more on year end bonuses which help keep good employees without raising fixed costs. Of course industries that are planning the bigger pay raises will be the energy companies, which will be giving raises averaging 4.8%. Running right behind them are the legal and accounting sectors who plan on 4.5% increases.

1 comment:

freedumb said...

Mark me down in the salary-not-keeping-up-with-inflation category.