New York CNN —US employers are planning smaller pay raises and fewer promotions next year, compared to what they gave this year. Based on their replies, Mercer said compensation budgets for merit increases are expected to grow by an average of 3.5% in 2024, down from 3.8% this year. While the expected pay increases are lower, relative to 2023, they are still higher than they typically were before the pandemic. The expected pay increases for next year reflect “the ongoing tightness of the labor market and low levels of unemployment. “This is a result of off-cycle pay increases, which 59% of employers reported providing in 2023.

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Persons: Mercer, won’t, ”, Lauren Mason, ” Mason Organizations: New, New York CNN Locations: New York