How is inflation affecting pay raises this year?
 | FRI, DEC 02, 2022 | | | |
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| | | TECH, TRANSFORMATION AND THE FUTURE OF WORK | | | |
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Welcome to the CNBC @Work newsletter, brought to you by CNBC Events. Think a friend, colleague or business partner should receive this newsletter? Subscribe here. Despite the Federal Reserve's efforts to slow things down, November was yet another strong month for jobs with 263,000 payrolls added. This number blew past the 200,000 estimate. Meanwhile, the unemployment rate came in as expected at 3.7%. Average hourly earnings were up 0.6% and wages are up 5.1% year-over-year, both of which were higher than expected. With the labor market refusing to slow down, it's unlikely the Fed will change course and will continue to raise rates. As we approach the end of the year, many workers are hoping for a pay raise. Last year, the average raise was 4.8%, higher than the typical cost-of-living 3% of years past. But even that increase was well below the pace of inflation, therefore, limiting consumers' purchasing power. In the past few months, inflation has come down marginally, but at 7.7% it is still well above the Fed's 2% target. Unfortunately, most companies have never matched pay increases to the rate of inflation, however, there is good news for workers: a recent WTW report forecasts a 4.6% salary boost heading into 2023. Although, there are economic uncertainties heading into 2023, the tight labor market continues to benefit workers. For more on the world of work, check out our Key Stories roundup below. Until next time, stay safe, stay healthy and stay in touch. |
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| | Job openings dipped in October amid the Federal Reserve's efforts to cool off a red-hot employment market, the Labor Department reported Wednesday. The Job Openings and Labor Turnover Survey, a closely watched gauge of slack in the labor force, showed there were 10.3 million vacancies for the month. That's a decline of 353,000 from September and down 760,000 compared with a year ago. |
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| | Despite amplified recession fears and headlines of mass layoffs at tech companies, overall layoffs in the job market remain historically low — and there are 1.7 job openings for every unemployed person, according to the latest Labor Department data. In some states, however, jobs are more plentiful and the unemployment rate is much lower than others, offering residents a better chance at landing a secure, high-paying role, according to WalletHub's 2022 Best and Worst States for Jobs report. |
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| The rollout of New York City's salary transparency law on Nov. 1 was kind of a disaster: During its first few days, New Yorkers called companies out for posting $2 million pay ranges, deleting posts and advertising six-figure bands that tested the law's requirement to post "good faith salary ranges." As of Nov. 1, 46% of all NYC job listings included salary ranges, according to data on tens of thousands of job ads from Glassdoor, the job search platform. |
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Small Business Playbook | Strategic Planning for 2023 | December 14 A new year is on the horizon, and with it comes both uncertainty and the potential for opportunity. With inflation continuing to be a top challenge, and a recession looking more and more likely, the CNBC Small Business Playbook virtual summit will provide actionable advice to assist entrepreneurs with strategic planning to navigate a rocky road ahead, while uncovering hidden opportunities to help businesses not just survive, but thrive in 2023. Learn more and register here. |
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