According to CFO Dive, next year US employers are planning the highest pay raises in 15 years. Overwhelmingly, the executives surveyed cited a tight labor market as their main driver, with 73% indicating that they would be increasing wages to attract and retain their labor force. However, with national wages expected to rise by an average of 4.1%, these pay raises still would not offset the recent drop in real earnings due to rising inflation.
While the national average for wage increases is expected to be around 4% next year, manufacturing is one vertical where pay increases have historically lagged behind the rest of the market’s growth due to stringent control over wages by management and pushback against rising wage trends. So, how much will manufacturers increase wages next year?