This growth will be driven by increased production of gas and oil, increased use of hydraulic fracturing (fracking), and the rebound of the construction industry. The monetary authorities, credit intermediation, and related activities industry is expected to increase its real output by $315.9 billion, reaching more than $1.1 trillion in 2022, making this increase the fourth largest in real output during the 20122022 period. This employment growth contrasts with the 3.4 million jobs that were lost between 2002 and 2012. This increase is slightly larger than the increase of 142,600 experienced during the 20022012 period. For example, the Executive Vice President position had an overall average of $909 but showed an average of $774 in firms under 100 million and $959 in companies over 100 million in revenue. Average US Pay Increase Projected to Hit 4.6% in 2023 Organizations in France, Russia, India and South Korea are all forecasting salary increase budgets that are more than half a percentage point higher in 2022 compared to the prior year. Salary increases for Canadians to average 4.2 per cent: survey | CTV News Although self-employed and unpaid family workers accounted for slightly less than 50 percent of all jobs in this sector in 2002, these workers are projected to represent only about one-third of all jobs in the sector in 2022, as the shift from smaller family farms to larger corporate farms continues. These declines were followed by a 1.3-percent employment gain from 2010 to 2011 and a 1.7-percent gain from 2011 to 2012. The projected decline of $3.0 billion is smaller than the decline of $12 billion, at 1.9 percent annually, seen between 2002 and 2012. Federal government. (See table 1.) Because wholesale trade has a large employment base, employment in this sector has an annual growth rate of only 0.8 percent. The poll also found that when budgeting for adjustments or other increases, 67% of respondents said those are applied as a market/competitive adjustment. On top of the various market dynamics, employees who might feel entitled to a larger merit increase than what the organization has previously planned for adds a wrinkle for employers to deal with during this time of year. (See tables 3, 4, 5, and 6.) (See table 3.) Although the total number of jobs in these sectors was smaller in 2012 than it was in 2002, it will grow over the next decade, with most of the projected growth occurring in the construction sector. Early projections for 2023 indicate that U.S. salary increase budgets for 2023 could average 4.1%. The civilian labor force is projected to grow from 155 million in 2012 to 163.5 million in 2022, an annual growth rate of 0.5 percent. 34 Ian King, PC shipments fall for 5th quarter even as U.S. decline slows, Bloomberg News, July 2013, http://www.bloomberg.com/news/2013-07-10/pc-shipments-shrank-11-percent-in-second-quarter-gartner-says.html. This increase is only slightly larger than the 12,000 jobs added between 2002 and 2012. 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. The November Salary Increase Budget Survey shows that almost half of respondents (46%) said that the increase in wages of new hires played a factor in salary increase budget estimates for 2022, and 39% said that increased inflation played a factor. The expected annual growth rate of 4.1 percent makes this industry one of the fastest growing in terms of output. (See table 1.) Increased budgets are evident across most of the worlds largest economies. 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. Labor force projections to 2022: the labor force participation rate continues to fall, Monthly Labor Review, December 2013. . Real output is projected to grow from $317.5 billion in 2012 to $397.1 billion in 2022, an increase of $79.6 billion. As with employment, construction output is expected to show a significant rebound in the upcoming decade, as the sector recovers from the latest recession. This increase is slightly down from the 704,100 jobs added between 2002 and 2012. Your information has been sent successfully. A wage-price spiralwhere higher prices and rising wages feed each other, leading to faster increases in bothmay already be in the works. Pandemic recovery is a key driver of projected job growth in some sectors. Adding more pressure on employers to raise wages, consumer prices rose 9.1 percent year over year in June 2022, a new 41-year high, the U.S. Bureau of Labor . Projections for 2022 salary increase budgets jumped almost a full percentage point from 3.0 in April to 3.9 in November. This content is exclusively for WorldatWork members. We are currently experiencing a temporary issue with e-commerce. The market-leading CompAnalyst SaaS platform accelerates compensation workflows, delivers real-time data, and powers accurate, equitable, and competitive compensation. The November Conference Board Salary Increase Budget Survey portends a 3.9% jump in wage costs for firms in 2022, compared to 3% reported in April. Actual and projected pay increase data at the city and national levels. For 2022, 12 percent of organizations intend to give 4-5 percent increases, versus just 7-8 percent of organizations in 2021. This increase is lower than the $40.3 billion increase in real output that occurred during the previous decade. The mining sector is expected to experience an increase in real output over the projection period. Increased pressure to reduce government spending and budget deficits will contribute to employment declines in the federal government. Manufacturing is projected to shed 549,500 jobs between 2012 and 2022, an annual rate of decline of 0.5 percent, which is slower than the 2.4-percent rate of decline experienced during the previous decade, in which more than 3.3 million jobs were lost. (See table 5.) Benefits are becoming increasingly important and can be key differentiators. Average salary increases across regions (excluding zeros), Global Innovation and Product Development Leader, Rewards Data Intelligence. What is the overall market competitiveness at base pay within your organization? The apparel manufacturing industry also is projected to see one of the largest decreases in employment, shedding 85,800 jobs (or 50 percent of all jobs in the industry) and reaching a level of 62,300 jobs in 2022. This would slow GDP growth to below current expectations by economists (3.9 percent year-on-year, according to a Bloomberg Consensus Survey). 27 See Annual energy outlook 2013 (U.S. Department of Energy, April 2013), http://www.eia.gov/forecasts/aeo/source_natural_gas.cfm. This is still down on pre-pandemic levels. 28 For more information, see Woodward, The U.S. economy to 2022.". The majority of the employment growth in this sector is expected to occur in industries that are connected to the construction sector. With your top management support, consider the overall 2022 adjusted salary increase budget at 4.0% or above, depending on your industry and competitive requirements. According to the report by consulting firm Eckler Ltd., the national average base salary increase for next year is projected at 4.2 per cent, excluding planned salary freezes, which parallels 2022 . Over the summer, the data showed "low 3%" pay raise projections for 2022, but when the firm started hearing a lot of anecdotal talk about much larger increases and more concern about retaining and . Focused on tighter labor markets and the need to attract and retain talent, more than 80% of organizations globally held their regular salary review cycle in 2021 (compared to 63% in 2020), with budgets increased over prior years. 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. The projected increase of $220.5 billion also is larger than the $136.9 billion increase seen in the previous decade, and the expected annual growth rate of 3.4 percent is faster than the 2.8-percent growth rate experienced during that decade. The recovery in the construction sector will account for almost all of the job growth in the goods-producing sectors over the projection period. (See tables 5 and 6.) BLS projects that GDP will grow at an annual rate of 2.6 percent between 2012 and 2022, a growth rate that is higher than the annual rate of 1.6 percent experienced during the 20022012 period,6 which included the recession that ended in June 2009. Employment is projected to fall by 65,200, 0.2 percent annually, to reach a level of just over 2.6 million in 2022. While GDP is expected to grow faster during the projection period than it did during the previous decade, the labor force is projected to grow at a slower pace than it did over the previous decade. The CIPD's quarterlyLabour Market Outlook is one of the most authoritative employment indicators in the UK and provides forward-looking labour market data and analysis on employers recruitment, redundancy and pay intentions. Despite declining employment, about 4,700 openings for adult basic and secondary education and ESL teachers are projected each year, on average, over the decade. Salary increase budgeting appeared to be fairly typical at the start of 2022, with a 3.0-3.5% salary increase budget competitive at that time. Growth in wages for new hires and accelerating inflation are the main causes of the jump in salary increase budgets. This industry provides contract- or fee-based support services, including drilling, taking core samples, and making geological observations at prospective sites, for the mining and quarrying of minerals and for the extraction of oil and gas. 26 Suzanne Sechen, Developments in new animal technologies show rapid advancement: CVM keeping pace, FDA Veterinarian Newsletter 22, no. This loss is due mostly to a decrease in circulation caused by the rise of available information on the Internet, e-readers, and tablets. Projections for 2022 salary increase budgets jumped almost a full percentage point from 3.0 in April to 3.9 in November. Employment of self-employed and unpaid family workers is projected to fall by 198,400, from 805,800 in 2012 to 607,400 in 2022, an annual rate of decline of 2.8 percent. Many new jobs in the sector are in the information technology field and require workers who can operate networked robotic machines, develop software, and manipulate electronic databases. Members of The Conference Board get exclusive access to the full range of products and services that deliver Trusted Insights for What's AheadTM including webcasts, publications, data and analysis, plus discounts to conferences and events. An official website of the United States government After establishing your increases budget based on market data intelligence, it is critical to align your priorities. The annual increase of 3.6 percent makes this industry one of the fastest growing in terms of real output. Ensure they are paid competitively to the labor market. More than 10,500 service providers and suppliers are also associated with AGC, all through a nationwide network of chapters. (See table 4.) Learn how we help individuals understand their value. This growth rate is faster than the 1.5-percent-per-year rate of increase seen in the 20022012 period. This decline accounts for more than 44 percent of the jobs lost in the federal government sector and contrasts with the 218,500 jobs added in the industry during the previous period. Salary Projections for 2022 and Considerations for Mid-Year Pay Increases The construction sector is projected to see one of the largest and fastest increases in real output, an increase of $386.3 billion, from $773.8 billion in 2012 to almost $1.2 trillion in 2022, an annual rate of increase of 4.1 percent. . Rising enrollment in schools, an increasing assimilation of students with disabilities into regular instruction, and a growing number of people seeking postsecondary education to increase their skills are expected to drive the employment growth in this sector.22 Real output in the sector is projected to increase from almost $1.8 trillion in 2012 to more than $2.0 trillion in 2022, an increase of $240.4 billion. Of the organizations that reported higher 2022 projections at the end of the year, the average total increase was about 3.7% (compared to 2.9% for 2021 for the same group of companies). (See table 4.) Big raises in store for U.S. workers in 2022, report says - The Current & projected data on pay increases, structure adjustments, and more. Looking at 2022, greater scrutiny on the labor market will continue among both employers and employees. 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. 2021 was another year of change, with tightening labor markets pushing salary increases around the world. This growth in output contrasts with the loss of $34.6 billion, at 1.5 percent per year, which occurred during the previous decade. Manufacturing is projected to experience a slight decline in employment over the projection period. Because the labour market remains persistently tight vacant jobs are plentiful but available workers are scarce. Discover our practice guidance and recommendations to tackle bullying and harassment in the workplace. This projected growth makes this industry one of the largest and fastest growing in terms of output. (See table 3.) Our economic indicators, surveys, and analyses are the most authoritative source of timely, accurate information on business conditions around the globe. One-stop, member-exclusive portal for the entire suite of indicators. For more information, visit the NBER website on the Internet at http://www.nber.org. Construction Executive Pay Reported to Rise by 4.7% for 2023 2022 Trends in employee pay - WTW - Willis Towers Watson The 1.9-percent annual growth rate of employment over the projection period also is slower than the 8.1-percent annual growth rate experienced during the 20022012 period. The Conference Board and torch logo are registered trademarks of The Conference Board. This is the first sign of a notable shift in salary budget increases in 10 years, particularly for hourly employees who have long experienced stagnant pay, said Chris Fusco, Senior Vice President of Compensation at Salary.com. Because of its size, the manufacturing sector is responsible for the majority of the increase in real output within the goods-producing sectors. Evaluate and optimize the impact of corporate citizenship programs. Real output is projected to rise from $165.9 billion in 2012 to $262.9 billion in 2022. Internet Explorer is no longer a supported browser on imercer.com. For an optimal experience on imercer.com, please use Chrome, Edge, Firefox, or Safari. Dissatisfaction and reduced productivity by employees who feel disengaged is another ramification.. The service-providing sectors also are expected to account for the largest portion of real output over the projection period. Within this article, sectors generally refer to two-digit NAICS categories, subsectors to three-digit NAICS categories, and industries to either two-, three-, or four-digit NAICS categories. The number of agricultural workers, which includes wage and salary workers, self-employed people, and unpaid family workers, is expected to decline by 223,500. For perspective, last year just under 10 percent of organizations planned a higher salary budget increase than the prior year. Cost pressures, an aging population, and technological advances are expected to shift services from inpatient facilities and hospitals to the offices of health practitioners, driving growth in both employment and real output. Industry employment and output projections to 2022 The securities, commodity contracts, and other financial investments and related activities industry is projected to see one of the largest and fastest increases in both employment and real output within the financial activities sector. 1 The National Bureau of Economics Research (NBER) is generally recognized as the official arbiter of recessions in the United States. However, this increase does not make up for the 254,000 jobs lost between 2002 and 2012, and employment in 2022 is expected to be at a level well below the 2002 level of 733,600. . The 1.9-percent projected annual growth rate in employment during the 20122022 period also is slower than the 2.4-percent growth rate seen in the 20022012 period. Real output is projected to increase from $5.9 billion in 2012 to $7.4 billion in 2022, an increase of $1.5 billion, at an annual rate of 2.2 percent. Real output declines in the two industries are projected to be among the largest and fastest over the projection period, with the apparel manufacturing industry seeing an output decrease of $1.1 billion, an annual rate of decline of 0.6 percent, to reach $17.2 billion in 2022, and the leather and allied product manufacturing industry seeing a decrease of $300.0 million, an annual rate of decline of 1.0 percent, to reach $2.3 billion in 2022. With a growing population and an increasing number of Environmental Protection Agency regulations, as well as state regulations, the demand for workers in this industry is expected to rise. (See table 6.) (See table 1.). If it is a one-year cycle, it is best to manage 2022 increases separately. Changing demographics, as well as the upcoming retirement of the baby-boom generation, are expected to lower the labor force participation rate. To Stay Competitive, Companies Are Increasing Pay in 2022 (See table 5. (See tables 3 and 5.) This increase is higher than the $86.8 billion increase seen during the previous decade. Consider looking at the market competitiveness of critical employees, at-risk jobs and job families, and high performers within the organization in lieu of across-the-board increases. This is up just slightly from 2022 projections of 3% and 3.3%*, respectively, from our August Pulse and an increase over 2021 actual increases of 2.8% .