Wages aren't keeping pace with inflation, Glassdoor reports
- Wages in the U.S. have increased slightly, but they're not keeping up with inflation, Glassdoor reports. Workers' take-home pay, adjusted for inflation, has declined in the 10 metro areas the company tracks for its Glassdoor Local Pay Reports.
The annual median base pay in the U.S. grew only 0.9% year over year in January 2018 to $51,364. Among ten metro areas tracked, growth was fastest in San Francisco (up 2.2% to $68,328), and Washington, D.C. (up 1.9% to $59,269). The industry with the biggest wage gain was medical technology, in which the median salary rose 4.1% to $54,747, the report says.
- An economics data scientist at Glassdoor predicts that the current trend will reverse during the year, with either stronger wage gains or softening inflation rates.
With a tight labor market, employers continue to search for solutions to the war for talent. Businesses are trying paid leave, voluntary benefits and some — but far from all — are responding with higher pay. And while pay doesn't always top workers' wishlists in survey results, employees still want a raise. In fact, they want a $6,000 raise, according to one recent poll.
Some employers have announced compensation increases in recent weeks, citing windfalls from the new tax law. Aflac and Comerica, for example, say they plan to use those savings to expand employee benefits and raise minimum wage, respectively.
Other employers may have to consider similar moves, as workers realize that job switchers can boost their wages faster than those who stay put.