"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 . The increase in residential investment and nonresidential structures investment during the 20122022 period is expected to spur growth in employment and output in the construction sector. The annual growth rate of 4.7 percent, which is the same as that seen between 2002 and 2012, makes this industry the fourth fastest growing in terms of output over the projection period. The manufacturing sector, while projected to experience employment declines, remains the dominant sector within the goods-producing sectors in terms of both employment and output. 27 See Annual energy outlook 2013 (U.S. Department of Energy, April 2013), http://www.eia.gov/forecasts/aeo/source_natural_gas.cfm. For more information, contact PAS by phone at (800) 553-4655 or www.pas1.com. The 3.4-percent annual growth rate in real output over the projection period is faster than the 1.4-percent growth rate seen in the previous period. 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. Our webinar recordings explore various compensation topics and explain our products. If you would like more details on the Mercer QuickPulse or US Compensation Planning Survey please contact us at 800-333-3070. Strong economic performance in the mid-2000s led to rapid nonresidential construction and an excess inventory at the time the recession hit; as a result, investment in nonresidential structures slowed in subsequent years.30 Investment in nonresidential structures is projected to grow at 2.0 percent annually over the projection period, contrasting with the 0.1-percent annual rate of decrease seen during the previous decade. Due to high wage growth and inflation since April 2021, we fielded the Salary Increase Budget Survey again in November 2021. Organizations in smaller economies shared a similar fate, mostly averaging similar salary budgets in 2021 when compared to 2020. PDFs to previous reports can be found below. The fast growth in residential construction can be attributed to a low starting point occasioned by the latest recession.28 The need of new housing to accommodate a growing population and to replace older housing also will play a role in this investment increase.29 The health of the housing markethealth gauged by measures such as foreclosure rates and housing startsis a reliable indicator of economic recovery. Detailed information on the use of cookies on this site is provided in our, Detailed information on the use of cookies on this site is provided in our, 2022 Salary Increase Budgets Are the Highest Since 2008, The drop in employment view from metro areas, Another Month of Robust Job Growth in March. Federal government. The majority of the employment growth in this sector is expected to occur in industries that are connected to the construction sector. 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. Employment in the industry is expected to increase by 80,700, from 391,100 in 2012 to 471,800 in 2022, accounting for more than two-thirds of the employment growth in the mining sector. 5 Throughout this article, unless otherwise noted, output refers to real output in chain-weighted 2005 dollars. (See table 2.) The loss of 549,500 jobs is substantially smaller than the loss of more than 3.3 million jobs during the 20022012 period. While this decline represents one of the largest decreases in employment over the projection period, it is smaller than the decline of 69,500 that occurred during the 20022012 period. The site is secure. 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. Employers Revise Upward 2022 Salary Budget Projections. For more information, please visit the company website at www.salary.com. What is the overall market competitiveness at base pay within your organization? Julie Murphy This growth rate is faster than the 1.5-percent-per-year rate of increase seen in the 20022012 period. The $147.8 billion increase, an annual growth rate of 2.5 percent, is one of the largest increases in real output, but not one of the fastest, again because of a large output base. Main Office Fax: (703) 842-8817info@agc.org. Prior results. Simply revisit the survey and click the submit button to confirm previously entered . But is it enough? The sector is expected to add almost 3.5 million jobs, the third-largest increase among all major sectors, to reach a level of more than 21.4 million jobs in 2022, up from just over 17.9 million in 2012. Yet, salary increases still will need to be allocated in line with market conditions and influenced by clear business priorities. There are many different levers involved, he said. More than ever, making the most of your capital means solving a complex risk-and-return equation. This would mark the highest rate since 2008. Here are the key findings: Tables with details by employment category, industry, revenue, and number of employees can be found here. While this increase almost erases the loss of $85.9 billion that occurred in the previous decade, real output in 2022 is projected to be below the level it attained in 2002. For the latest in HR and compensation news, subscribe to our monthly e-newsletters, blogs, and white papers. (See tables 3 and 4.) After being a non-issue in wage determination for several decades, sizable cost of living adjustments may be making a comeback. Richard Henderson Nonagricultural wage and salary employment data are from the BLS Current Employment Statistics survey, except for private household employment data, which are provided by the Current Population Survey (CPS). Employment of adult basic and secondary education and ESL teachers is projected to decline 6 percent from 2021 to 2031. Although this job growth is larger than the 518,800 jobs added from 2002 to 2012, it is slower than the 5.8-percent-per-year growth experienced between 2002 and 2012. Planned 2022 Salary Increases for US Workers are Trending Upward. During that time, overall wage growth is likely to remain well above four percent. Employment in local government educational services is projected to increase by 454,400, to reach more than 8.2 million in 2022, representing one of the largest increases in employment among all industries. 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. 2300 Wilson Blvd., Suite 300 In newly released findings by . This large output growth can be attributed to the rebound in the construction industry and the housing market, a rebound expected to occur over the 20122022 period.18 The projected 2.8-percent annual growth rate in real output during the projection period is an improvement over the 1.1-percent growth rate experienced in the 20022012 period. 41% of organizations will have a higher salary increase budget in 2022 than 2021. While output is projected to grow, productivity gains in this industry are expected to result in employment declines. The projected loss of 25,100 jobs, at an annual rate of decline of 0.2 percent, contrasts with the 89,500 jobs added between 2002 and 2012, at an annual growth rate of 0.7 percent. (See table 1.) Most organizations in the 15 largest economies experienced a dip in 2021 compared to their 2020 actual budgets, increasing their salary budgets by an average of 4.0% among those granting increases. The average NV Energy bill for July is expected to reach $470 in Southern Nevada, up from $337 last year, and the average bill in Northern Nevada is projected at $212, up from $159 in 2022, says . Figure 2. Employment in state and local educational services is expected to account for slightly more than two-thirds of the increase in employment in the state and local government sector over the 20122022 period. After establishing your increases budget based on market data intelligence, it is critical to align your priorities. This output growth is almost three times that seen in the previous decade. Faster growth in wages for new hires and accelerating inflation are the main causes of the jump in salary increase budgets in recent months. There are several findings that are worth noting from our survey of global practices. Because consultants can be hired temporarily and on as-needed basis, they represent a lower cost alternative to full-time staff. Salary.com is the leading SaaS provider of compensation market data software, and analytics, bringing more of the trusted data and intuitive software organizations need to get pay right. Projected 2022 salary increases in high-performing industries vs. industries that were harder hit by the pandemic. 57% of employers have hard-to-fill vacancies, and 29% anticipate significant problems in filling hard-to-fill vacancies over the next six months. Organizations have had to adjust their projections as global labor market challenges have unfolded. The latest research, expert advice, and compensation best practices all in one place. Construction Executive Pay Reported to Rise by 4.7% for 2023, Associated General Contractors of America, 2023 Construction Safety Week & OSHA Falls Stand-Down, AGC Construction Safety Excellence Awards (CSEA), AGC Construction Safety Professional of the Year (CSPY) & Construction Safety Champion of the Year (CSCY) Awards, AGC Emerging Contractors Education Series. In addition, this industry is projected to experience one of the fastest and largest growths in real output over the projection period. While real output is expected to continue to grow, employment is expected to decline as a result of industry consolidation and productivity-enhancing new technologies, such as diet improvements, selective breeding programs, and drug development.26 The animal production industry is projected to see the largest decrease in jobs among all industries in this sector, with the number of jobs falling from 894,400 in 2012 to 750,100 in 2022, a loss of 144,300 jobs, at an annual rate of decline of 1.7 percent. Real output is projected to grow from $317.5 billion in 2012 to $397.1 billion in 2022, an increase of $79.6 billion. This is noteworthy, as it is above 2020s increase of 3.8%. Software as a Service is expected to become more entrenched within the software publishing business model, increasing consumer and business reliance on software applications accessed on the Internet, as well as remote, rather than local, storage. Real output in home health care services is expected to increase from $42.2 billion in 2012 to $65.3 billion in 2022, an annual growth rate of 4.5 percent, which is one of the fastest among all industries and faster than the 2.4-percent growth rate seen between 2002 and 2012. Monthly, forward-looking composite of eight proven labor-market indicators. Health care and social assistance. Industries with the largest output growth and declines, 20122022, Personal consumption expenditures, 20002012 and projected 2022, Wage and salary employment in construction, 19902012 and projected 2022, Wage and salary employment in manufacturing, 20002012 and projected 2022, Division of Information and Marketing Services, Top Picks, One Screen, Multi-Screen, and Maps, Industry Finder from the Quarterly Census of Employment and Wages, https://www.bls.gov/opub/mlr/2011/04/art1full.pdf, https://www.bls.gov/opub/mlr/2013/article/the-u-s-economy-to-2022-settling-into-a-new-normal.htm, https://www.bls.gov/opub/mlr/2012/01/art4full.pdf, http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/NationalHealthAccountsProjected.html, http://www.eia.gov/forecasts/aeo/source_natural_gas.cfm, http://www.theatlantic.com/magazine/archive/2012/01/making-it-in-america/308844/, https://www.bls.gov/emp/tables/industry-employment-and-output.htm, Industry employment and output projections to 2024, Labor force projections to 2022: the labor force participation rate continues to fall, The U.S. economy to 2022: settling into a new normal, Occupational employment projections to 2022. Early projections for 2023 indicate that U.S. salary increase budgets for 2023 could average 4.1%. WorldatWork is a United States 501(c)(3) tax exempt organization. Before sharing sensitive information, The increasing use of email and online payment of bills, along with the decreased circulation of magazines and catalogs in the last decade, indicates that consumers are moving away from services provided by the Postal Service. Chart 2 shows that salary increase budgets and salary structure movements are now much higher than any time since 2008. Skill shortage vacancies are a particular problem and currently outnumber labour shortages. According to the survey, nearly three in four respondents (74%) cited the tight labor market for increasing their budgets from prior projections, while only one-third cited anticipated stronger financial results (34%) and inflation or the rising cost of supplies (31%). Yet, while uncertainty was the word of the year (thankfully nudging out 2020s unprecedented), one thing was clear: Labor market pressures stemming from the pandemic had a significant impact on how organizations finalized their 2022 pay budgets. With a projected increase of 456,000 jobs and an annual growth rate of 3.5 percent, employment in this industry is one of the largest and fastest growing among all industries. While the optimism shown by different countries comes with hints of caution, 2022 will likely be a better year for salary increases. It can be difficult to keep up with relevant compensation trends and how they impact your organization. Base pay may increase by an average of 3.9% in 2022, the largest one-year projected hike since 2008, according to The Conference Board's latest wage survey of 240 companies, the majority of . AGC Store Inquiries: (800) 242-1767 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. It is now common to see pay increases of 4.0% or more in 2022.
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