The last few years have been especially hard on Americans’ savings, with record inflation rates widening the gap between wages and cost of living — and it doesn’t look like most employees can expect raises to make up the difference.
While 74% of business leaders anticipate giving raises this year, half noted that pay increases will impact 50% or less of their workforce, according to a survey from Resume Builder. Of employers giving raises, 69% will offer cost-of-living bumps; 50% will offer a raise of 3% or less. And while inflation is expected to drop below 2.5% in 2024, according to the Federal Reserve Bank of St Louis, a 3% raise will not make up for prices increasing by as much as 9% in 2022.
