Why workers' raises are smaller in 2024 — and may not go up from here
Workers are poised to get smaller raises in 2024 — and their annual pay bumps are unlikely to increase again anytime soon amid a cooler job market, labor experts said.

U.S. companies plan to give salary increases of 4%, on average, this year, down from 4.4% in 2023, according to a survey by Willis Towers Watson.

Similarly, a Mercer poll indicates companies' total salary budgets, which include money for all pay increases, such as raises and promotions, will be 3.8% in 2024, on average. That's down from the 4.1% paid out last year.

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"We certainly think it will continue to come down," said Lauren Mason, senior principal in Mercer's career group. "But how much it does is a big open question at this point."

That said, the current forecast isn't paltry by recent historical standards. Raises averaged about 3% a year following the 2008 financial crisis, experts said.