This website stores data such as cookies to enable essential site functionality, as well as marketing, personalization, and analytics. By remaining on this website, you indicate your consent.Companies are trimming their budgets for merit raises next year, a sign of belt-tightening that could surprise some employees who had enjoyed two straight years of increases.
Workforce leaders echoed the findings. Bob Toohey, chief human resources officer at Allstate Insurance Co., said compensation budgets in the U.S. “will be lower than last year — all company budgets will be lower than last year.”The pay gains projected by Aon and Mercer are still well above pre-pandemic levels, when raises were stuck around 3% annually. That’s due to the continued resilience of the labor market and historically low unemployment, Mercer Senior Principal Lauren Mason said.
A separate survey from technology job site Hired found that tech salaries are now at a five-year low, adjusted for inflation. But jobs that require specialized skills, like machine learning engineers and data scientists, are still in high demand.
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