For Many Americans, Inflation Will Outpace Pay Increases This Year
Inflation in the United States is currently at 7% and climbing — but American companies are only expected to increase wages by half that rate.
According to a new Willis Towers Watson survey, American employers expect to increase pay by 3.4% for their workers in 2022. Among the reasons offered by the 1,004 participating firms were inflation and labor shortages — 31% cited the former, while 74% cited the latter.
“Inflation is an element of it, but that’s not the sole factor,” Willis Tower Watson senior director Lesli Jennings explained, as reported by CNBC. “I think the bigger piece is about this race for talent.”
In any case, the 3.4% wage hike would be insufficient to protect living standards from the current rate of inflation — which reached a 7% clip, the highest rate in four decades, at the end of last year. According to data from the Bureau of Labor Statistics, “real average hourly earnings” — which consider the effect of inflation — decreased by 2.4% from December 2020 to December 2021. – READ MORE
Responses