The .gov means it's official. And those with degree-level or equivalent qualifications are highest in demand. Changing demographics, as well as the upcoming retirement of the baby-boom generation, are expected to lower the labor force participation rate. In addition, the projected output growth of 3.2 percent per year is faster than the 1.7-percent-per-year growth seen between 2002 and 2012. Historically, executive staff predictions are about 0.5% low. For over 100 years, our cutting-edge research, data, events and executive networks have helped the world's leading companies understand the present and shape the future. The overall projected 2023 increases came in at 4.42% for middle managers and professionals with most regions also at 4.4%. Consider segmenting by employee level (e.g., hourly, professional, executive), performance level or even by areas in which youre having trouble attracting and retaining (e.g., digital talent). Real output in the subsector is projected to increase from $447.5 billion in 2012 to $684.4 billion in 2022, an increase of $236.9 billion. It is difficult to assess how long this challenging labor market and inflationary cycle will last. Although the sector is projected to add a large number of jobs between 2012 and 2022, it is not expected to reach the peak level of almost 7.7 million jobs seen in 2006. The increase of $481.8 billion also is the largest increase in real output over the projection period. This increase in output contrasts with the $182.9 million lost during the previous decade. The shift to more outpatient services, the increasing population of elderly people seeking to maintain some level of independence, and improvements in technology allowing younger patients shorter rehabilitation stays are expected to make this industry one of the largest and fastest growing among all industries. (See table 6.) Employers Revise Upward 2022 Salary Budget Projections. (See table 4.) For 2022, 12 percent of organizations intend to give 4-5 percent increases, versus just 7-8 percent of organizations in 2021. Employment in the construction sector is expected to see a large increase, while still not reaching prerecession levels. (See tables 5 and 6.) Employment in the real estate industry is expected to increase by 161,400, to reach almost 1.6 million in 2022. Fair selection: Surrey Police and Sussex Police, Putting people professionals on the road to net zero, People Profession 2022: International survey report, Effective workforce reporting: Improving people data for business leaders, Industrial change and organisational agility. 2023 WorldAtWork, Inc. All rights reserved. Through its Salary Wizard and pioneering website, Salary.com delivers continually updated, reliable market pay data and career content to over 30 million visitors each year. Here is how you know. Current & projected data on pay increases, structure adjustments, and more. https:// ensures that you are connecting to the official website and that any (See table 3.) The computer and peripheral equipment manufacturing industry is projected to have the fastest growth in real output among all industries, with output increasing at 9.2 percent annually. Pay and Benefits in a High Inflation & Recessionary Environment, Economy Watch: Emerging Markets View (February 2023), Small improvements in inflation and spending in March, Inflation and spending moderated in February, January CPI data show road ahead will be bumpy, 2021s Hot Wage Growth Will Likely Cool by Years EndBefore Surging Again by 2023. The site is secure. This increase is slightly down from the 704,100 jobs added between 2002 and 2012. Enrollment in primary and secondary schools is starting to slow, but is still increasing. The Associated General Contractors The net employment balance which measures the difference between employers expecting to increase staff levels and those expecting to decrease staff levels in the next three months remained positive at +28, meaning that employers plan to increase staff numbers in the three months to March 2023. Similarly, design/build contractors reported an average of $970 while mechanical contractors had an average of $763. Incorporated by Royal Charter, Registered Charity no. Average 2021 actual total salary increase budgets jumped from 2.6 percent in the April 2021 survey to 3.0 percent in the November 2021 survey. Although the recession ended in 2009, total nonagricultural wage and salary employment tends to lag output in recovery and did not start to grow until 2011. "Retention of top talent is a top priority and addressing compression and internal equity with the higher attraction salaries adds to a challenging compensation landscape . In addition to better cashflow and financial results in 2021, many organizations have increased salary budgets from their original projections due to concerns over talent attraction and retention. Growth in wages for new hires and accelerating inflation are the main causes of the jump in salary increase budgets. Over the last few projection cycles, apparel manufacturing and leather and allied product manufacturing have consistently been among the industries with the largest declines in employment and output. Real output is expected to increase from $15.9 billion in 2012 to $18.3 billion in 2022, an increase of $2.4 billion, at 1.4 percent annually. However, if it becomes an ongoing inflationary cycle that lasts several years, inflation needs to be considered when managing pay increases. Government wage and salary workers are excluded. Output in this industry is expected to increase from $61.5 billion in 2012 to $79.6 billion in 2022, an increase of $18.1 billion, which is larger than the $2.3 billion increase experienced during the previous decade. However, rising inflation in Argentina and Venezuela made these countries the exceptions to the rule, with increases of 7.3 and 279.9 percentage points higher in 2021 vs. 2020. Market data provides a good start for navigating the year ahead. At the same time, business leaders will have to decide how much they will pass the additional labor costs to consumers through price increases. Membership in The Conference Board arms your team with an arsenal of knowledge, networks, and expertise that's unmatched in scope and depth. While real output is expected to continue to increase, its growth rate may continue to slow as consumers shift from personal computers to cheaper tablets.34 Employment in this industry is projected to fall by 39,900, one of the largest declines in employment among all industries, to reach a level of 118,700 in 2022. This continues to exceed pre-pandemic levels, pointing to strong employment intentions. This increase is larger and faster than the increase of $57.3 billion, at 2.0 percent annually, experienced during the 20022012 period. As the economy continues to improve in the wake of the latest recession and as demand for domestic goods rises, so will the demand for wholesale trade services. Projections for 2022 salary increase budgets jumped almost a full percentage point from 3.0 in April to 3.9 in November. Construction. Over the projection period, personal consumption expenditures are expected to increase from $9.6 trillion in 2012 to almost $12.4 trillion in 2022, an annual growth rate of 2.6 percent, which is higher than the 1.8-percent growth rate experienced during the previous decade.21 Real output in the retail trade sector is projected to grow by $476.2 billion, to reach just over $1.7 trillion in 2022, representing the second-largest increase in real output among all industries. The annual increase of 2.6 percent for employment also makes construction one of the fastest growing industries. 28 For more information, see Woodward, The U.S. economy to 2022.". As the economic recovery gains momentum, however, employment in this sector is expected to increase by 751,000, to reach more than 8.5 million in 2022. (3) Includes agriculture, forestry, fishing, and hunting data from the Current Population Survey, except for data on logging, which are from the Current Employment Statistics survey. Employment in the industry is projected to grow by 600, from 9,000 in 2012 to 9,600 in 2022, an annual rate of increase of 0.6 percent. The faster wage growth of new hires has led to pay compression, which is when wage premiums for work experience shrinks. The electric power generation, transmission, and distribution industry is projected to see an employment decline that is larger than that in any other industry within the utilities sector and one of the largest overall. (See figure 1.) Average US Pay Increase Projected . Real output in the forestry industry also is projected to increase by $1.9 billion, at an annual rate of 2.2 percent, to reach $9.3 billion in 2022. Whatever topic you need to explore, find our latest and most relevant resources, guides, case studies, viewpoints and research evidence. Results from our salary budget planning survey, By All rights reserved. Almost two-thirds of employers plan to award raises in 2023 that are larger than last year, Willis Towers Watson found in a survey of more than 1,400 U.S. companies conducted in April and May. (See table 2.) This increase is only slightly larger than the 12,000 jobs added between 2002 and 2012. It supports a business by not adding to ongoing fixed compensation expenses. BLS PROJECTS THAT OVERALL EMPLOYMENT AND OUTPUT GROWTH will improve in the 20122022 decade, compared with the 20022012 decade, which saw a major recession whose lingering effects are still evident in the economy. The goods-producing sectors, excluding agriculture, are projected to increase their real output from $5.6 trillion in 2012 to nearly $7.4 trillion in 2022, an annual rate of increase of 2.7 percent. Faster wage growth for new hires. Employment in the construction sector is projected to increase by more than 1.6 million, the largest increase in employment in any industry, to reach a level of nearly 7.3 million in 2022. However, double-digit inflation rates would cause concern. Expected pay awards in the private sector remain at a median of 5%; however, public sector pay award expectations are at just 2%. 2022 salary increase budgets higher than ever. 2021 was another year of change, with tightening labor markets pushing salary increases around the world. The 1.8-percent annual growth rate in employment is the third fastest among the service-providing sectors and faster than the 1.2-percent annual growth rate experienced between 2002 and 2012. Despite this fast employment growth, the industrys real output is relatively small. By participating in the survey, you will automatically receive the results for free when they publish. The majority of the employment growth in this sector is expected to occur in industries that are connected to the construction sector. Every 2 years, the Bureau of Labor Statistics (BLS) provides employment projections that look at long-term employment trends. Employment of these workers is expected to rise by 15.3 million, to reach almost 149.8 million in 2022.4 The remaining increase in employmentan increase of 527,700 jobsis expected to come from nonagricultural self-employed and unpaid family workers, whose employment is projected to reach 9.3 million by 2022. (See tables 2 and 5.) In New Data from Salary.com, Planned 2022 Salary Increases for American Workers are Trending Upward, Breaking a 10-year Flat Cycle 41% of organizations will have a higher salary increase budget in . Source: U.S. Bureau of Labor Statistics, Current Employment Statistics (historical data) and Employment Projections Program (2022 data).