Wage Increases Are Coming, But Inflation Is Still Lurking

A new survey shows that average wages are likely to continue increasing into 2023, but inflation may negate any of this progress. 

According to the findings from Willis Towers Watson, U.S. employers are predicting the average raises will grow by 4.1% in 2023, the largest jump in 15 years. 

However, inflation is simultaneously growing and reached a 40-year high just last month, indicating that these increases are not keeping up with anticipated wage growth. 

When considering other types of compensation, such as bonuses, employees may see their pay actually keep up or exceed inflation.  

Pairing this with the tightening labor market, companies are working in overdrive to offer new incentives that will retain and entice new workers. 

Among the jobs that will likely see an increase in wages, John Bremen, a managing director at Willis Towers Watson predicts that this may range from hourly workers to high-skill jobs within the tech and healthcare industries. 

“Jobs heavily concentrated by those populations may see pay go up disproportionately. It’s [often] hard to attract and retain people in those groups,” said Bremen.