Filed Under: Business

Survey: American workers to get largest one-year wage bump since 2008

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According to The Conference Board’s November Salary Increase Budget Survey published Tuesday, American workers are expected to see a wage bump of about 3.9% in 2022. Not only is that figure up from the 3% number reported in April, but it’s also the highest year-to-year wage bump since 2008.

The estimated wage bump for American workers is already happening, forcing companies to raise their budgets for salaries. According to the survey, “average 2021 actual total salary increase budgets jumped from 2.6% in the April 2021 survey to 3% in the November 2021 survey.”  Back in October, the Labor Department reported a 1.5% wage jump in the third quarter. That’s the highest such jump seen in the department’s 20-year history of keeping such records.

The Conference Board cited two major factors in the increased amount of money companies are putting towards salaries: “Growth in wages for new hires and accelerating inflation.”

“The November Salary Increase Budget Survey shows that almost half of respondents (46%) said that the increase in wages of new hires played a factor in salary increase budget estimates for 2022,” The Conference Board wrote. “39% said that increased inflation played a factor.”

According to the survey, the wage bump for American workers “is especially strong for workers under the age of 25 and for people who switched jobs in the past year.” Back in October, the Labor Department reported a record 4.3 million American workers quit their jobs in August.

“This suggests that much of the wage acceleration has been among workers who were recently hired,” The Conference Board wrote.

The wage bump for American workers is also in response to inflation that has persisted for months now. Last month, the Labor Department reported a 6.2% year-to-year increase in consumer prices and an 8.6% increase in producer prices for the month of October. The consumer price increase was the highest since 1990, and the producer price increase tied the record set a month prior.

Labor shortages, caused in part by the record number of quits, are also playing a factor in the wage bump for American workers. The Conference Board said those shortages will continue through 2022.

“During that time, overall wage growth is likely to remain well above four percent,” The Conference Board said. “Wages for new hires, and workers in blue-collar and manual services jobs will grow faster than average.”

 

Simone Del Rosario: EMPLOYEES FLEXED THEIR MUSCLES THIS YEAR – AND IT’S PAYING OFF.

THE AMERICAN WORKER IS SET TO GET THE LARGEST ONE-YEAR PAY BUMP SINCE 2008.

ACCORDING TO THE CONFERENCE BOARD’S – SALARY INCREASE BUDGET SURVEY, WAGE COSTS ARE PROJECTED TO GO UP 3-POINT-9 PERCENT IN 2022.

THE PAY INCREASE IS STRONGEST FOR WORKERS UNDER AGE 25 AND FOR PEOPLE WHO SWITCHED JOBS IN THE PAST YEAR. THAT SHOWS MOST OF THE WAGE RAISE IS FOR RECENTLY HIRED WORKERS.. 

THANKS TO THE GREAT RESIGNATION, THAT’S A LOT OF PEOPLE. AMERICANS HAVE BEEN QUITTING IN NEAR RECORD HIGHS FOR THE LAST SIX MONTHS.

EMPLOYERS HAVE HAD TO JACK UP SALARIES IN PART BECAUSE OF THE LABOR SHORTAGE, AND CONFERENCE BOARD ECONOMISTS THINK THAT’LL CONTINUE IN 2022.

IT MIGHT BE THE BEST PAY RAISE IN MORE THAN A DECADE, BUT IT STILL WON’T COVER INFLATION, WHICH IS OVER SIX PERCENT THIS YEAR.

I’M SIMONE DEL ROSARIO. FROM NEW YORK, IT’S JUST BUSINESS.

 

According to The Conference Board’s November Salary Increase Budget Survey published Tuesday, American workers are expected to see a wage bump of about 3.9% in 2022. Not only is that figure up from the 3% number reported in April, but it’s also the highest year-to-year wage bump since 2008.

The estimated wage bump for American workers is already happening, forcing companies to raise their budgets for salaries. According to the survey, “average 2021 actual total salary increase budgets jumped from 2.6% in the April 2021 survey to 3% in the November 2021 survey.”  Back in October, the Labor Department reported a 1.5% wage jump in the third quarter. That’s the highest such jump seen in the department’s 20-year history of keeping such records.

The Conference Board cited two major factors in the increased amount of money companies are putting towards salaries: “Growth in wages for new hires and accelerating inflation.”

“The November Salary Increase Budget Survey shows that almost half of respondents (46%) said that the increase in wages of new hires played a factor in salary increase budget estimates for 2022,” The Conference Board wrote. “39% said that increased inflation played a factor.”

According to the survey, the wage bump for American workers “is especially strong for workers under the age of 25 and for people who switched jobs in the past year.” Back in October, the Labor Department reported a record 4.3 million American workers quit their jobs in August.

“This suggests that much of the wage acceleration has been among workers who were recently hired,” The Conference Board wrote.

The wage bump for American workers is also in response to inflation that has persisted for months now. Last month, the Labor Department reported a 6.2% year-to-year increase in consumer prices and an 8.6% increase in producer prices for the month of October. The consumer price increase was the highest since 1990, and the producer price increase tied the record set a month prior.

Labor shortages, caused in part by the record number of quits, are also playing a factor in the wage bump for American workers. The Conference Board said those shortages will continue through 2022.

“During that time, overall wage growth is likely to remain well above four percent,” The Conference Board said. “Wages for new hires, and workers in blue-collar and manual services jobs will grow faster than average.”

 

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