The salary outlook for 2010
So, what about your pay next year?
I mean, forget this year.
We can put 2009 down as the year of the pay cut, either with a knife or the pay cut that’s not called a pay cut.
It’s called a furlough or a forced unpaid vacation or a reduction in hours or the announcement that there will be no raises this year. In my reporting, I found so many examples of that.
And don’t forget the salary offers for new hires that recruiters said are coming in, across the board, at 10 percent to 50 percent less than a year ago.
So what’s ahead? The consultants at Hewitt Associates surveyed employers across the globe and found that salaried employees can expect a pay raise of 2.6 percent in 2010.
Before you start the party, know that 2.6 percent is an increase over 2009, when base salaries rose only 1.8 percent. That was the lowest such figure in 33 years. Hewitt started tracking this in 1976.
Okay, it’s better. But is it good?
Yes, at least by one estimate. In 2010, the Congressional Budget Office projects we'll have 1.7 percent inflation. So salaries will outpace rising prices.
This year, the CBO’s view is that we’ll have almost no inflation, a 0.1 percent rise in the Consumer Price Index, so pay was rising in real terms this year, as well.
But somehow, with all the stories of pay cuts, it doesn’t feel like it did at all.
Harriet Johnson Brackey, the personal finance columnist for the Sun Sentinel, is an award-winning business reporter. Her columns for 2008 were named "The Best in the Business," a national award chosen by her colleagues at the Society of American Business Editors and Writers.
Comments
Apparently the CBO doesn't buy groceries.;-)
Posted by: Doubleday | August 18, 2009 3:13 PM
The only people getting pay raises are our selected officials....and thats because the voted to get them automatically, no matter how bad WE are suffering.
Posted by: I Say | August 19, 2009 12:43 PM
Seems all the teachers up here in the St. Louis area are getting nice fat raises (i.e. 4.8% over the next two years) on the backs of already overwhelmed property tax owners. Unemployment is around 10%, homes are in foreclosure, the house values have declined. People are getting laid off or forced to take pay cuts to keep their jobs, but at least they have higher property tax bills to look forward to to support teachers and school administrators getting 4.8% annual RAISES.
Posted by: Delphinus13 | August 19, 2009 9:17 PM
Seems all the teachers up here in the St. Louis area are getting nice fat raises (i.e. 4.8% over the next two years) on the backs of already overwhelmed property tax owners. Unemployment is around 10%, homes are in foreclosure, the house values have declined. People are getting laid off or forced to take pay cuts to keep their jobs, but at least they have higher property tax bills to look forward to to support teachers and school administrators getting 4.8% annual RAISES.
Posted by: Delphinus13 | August 19, 2009 9:18 PM
I can't beleive someone could possibly complain about teachers getting a 4.8% raise. Teachers have the hardest job in America, they have to teach all these rotten spoiled children that for some reason can't get the proper guidance at home these days. Teachers have to be the Teacher, then the Parent, then the role model. Complain that Brett Farve just signed a contract for 25 mil. for 2 years. How rediculous is that, while the tax payers keep saying yes for their tax dollars to go towards the stadium that these Billionaires get to keep and they are able to pay their employees millions.
Posted by: Mike | August 20, 2009 8:47 AM
I can't beleive someone could possibly complain about teachers getting a 4.8% raise. Teachers have the hardest job in America, they have to teach all these rotten spoiled children that for some reason can't get the proper guidance at home these days. Teachers have to be the Teacher, then the Parent, then the role model. Complain that Brett Farve just signed a contract for 25 mil. for 2 years. How rediculous is that, while the tax payers keep saying yes for their tax dollars to go towards the stadium that these Billionaires get to keep and they are able to pay their employees millions.
Posted by: Mike | August 20, 2009 8:47 AM
4.8% over the next two years is not 4.8% annually. You should have paid attention in class.
Posted by: Nicole | August 26, 2009 2:23 PM
OK let me guess. What is inflation? Services went up by at least 5-10 %. Oil goes up and the moment we declare ressesion over it will be near 100$ per barrel.
Tools are up, taxes on cigs are up.
Property taxes are going up despite house value down. Insurance are going up ( i work for one). Beer is going up.
So when they say no inflation - they probably mean plasma TV's and netbooks right?
Right now each person spends more money on daily bases for necessity more than an year ago. But hey, there is no inflation. Just jacking up the prices for everything.
Posted by: PicassoInActions | August 26, 2009 5:52 PM