U.S. workers may receive slightly better pay raises this year, a shift that could add momentum to the economic recovery, the Wall Street Journal is reporting.
With corporate America sitting on large piles of cash, signs are mounting that some of the benefits will start trickling down to employees, the WSJ writes.
This could mean average wage gains of as much as 3 percent in 2011, compared with 1.7 percent in 2010, the WSJ reports.
“There are some green shoots in terms of wages,” Torsten Slok, senior economist at Deutsche Bank in New York, told the WSJ. “Companies are starting to respond in a more traditional way and reward their workers.”
Thus far in the recovery, companies have focused more on controlling costs than on sharing the fruits of rising profits and productivity with their staffs, the WSJ writes.
Now, though, the austerity appears to be easing. In a recent survey by Duke University’s Fuqua School of Business, chief financial officers forecast an average 2.5 percent pay increase in 2011, up from the 1.9 percent they forecast for 2010 a year earlier. A separate survey by the Society for Human Resource Management suggested the average increase could be closer to 3 percent, the WSJ reports.
It isn’t clear how widespread any pay increases might be, the WSJ writes.
What’s happening at your workplace? Do you expect to see better raises or not?
- Henry Unger, The Biz Beat
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