What the Pay Gap Means for Your Wallet & the Workforce
In a recent JCI survey, the average employee expects a 3.8 % salary bump over the next year—while employers are ready to hand out a 4.6 % raise. That’s a recipe for mixed feelings.
Why the Numbers Aren’t Aligning
- Skill shortages are running rampant across every sector.
- Businesses are budgeting carefully because the next generation of talent comes at a high price.
- Employees with degrees foresee 4.4 % increases, while those without see only 2.8 %.
Despite the overall dip in expected pay rises, 65 % of workers still anticipate a bump somewhere down the line. Yet most are choosing job security over a higher paycheck in this shaky economy.
How Workers Deal With “No Raise”
- 25 % would stay put if a raise isn’t offered.
- 20 % would consider switching employers for better pay.
- 16 % would cut back on non‑essentials.
- 13 % would chase side gigs.
- 7 % would relocate to cheaper living areas.
Matt Weston, Senior Managing Director at Robert Half, summed it up: “Wage inflation isn’t dropping fast enough, and people are feeling the money‑pinching in the cost‑of‑living crisis. The market is uncertain, so many are playing it safe rather than hopping ships for higher pay.”
Skills Shortages: A Double‑Edged Sword
When talent is scarce, companies are locked in a “Great Stay”—people keeping their jobs, which helps with retention. But it also shrinks the talent pool, forcing employers to go the extra mile (and maybe offer more than just a paycheck) to snag the right hires.
Bottom line: the pay expectation gap is a real indicator that the job market is narrowing, but workers are now choosing stability over daring salary hikes.
