"2024 Pay Raise Prospects Dim as U.S. Job Market Levels"
Originally Published 2 years ago — by CNBC
U.S. workers are expected to receive smaller raises in 2024, with companies planning an average salary increase of 4%, down from 4.4% in 2023. This trend is attributed to a cooler job market and is unlikely to reverse soon, according to labor experts. The demand for labor, which surged post-pandemic, has now moderated, leading to less aggressive wage growth compared to the "great resignation" period. Despite the decrease, the projected raises are still higher than the post-2008 financial crisis average of 3%. Companies are balancing the need to be competitive with the risk of overextending budgets, which could lead to layoffs.