Even for employees that haven’t been laid off, the recession is taking its bite: In just the past two months, companies have shrunk the amount they plan to give in annual raises next year down to a stingy 3%.
From the WSJ:
Workers are now projected to receive average annual merit increases of 3% next year, according to a new survey from Lincolnshire, Ill.-based Hewitt Associates Inc. When polled in October, employers said they had already lowered their budgets to 3.6% from 3.8% in July…
Worst hit: Auto workers and teachers.
Workers in some industries may see lower pay gains than others. Hewitt’s survey shows that employees in the automotive sector are expected to receive an average annual merit increase of 1.4% in 2009, down from the 3.5% figure projected in July.
Workers in education and financial services are also expected to receive below-average annual merit increases of 2.3% and 2.9%, respectively, down from 3.5% and 3.9% in July.
The one upside to paycheck misery? Stalled salaries and layoffs makes recruiting talent for startups easier than ever.
The Complete Guide To Surviving Layoffs
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