Modest pay rises may fall behind inflation

Employers are expected to offer modest pay increases in 2027, averaging 3.5%, according to a survey of 1,000 U.S. organizations. Companies are focusing on targeted raises for top performers rather than equal increases across all employees, with higher-paying sectors like tech and banking anticipating slightly higher raises. Many workers in industries with fewer job opportunities may not keep up with inflation, which is currently at 3.4% annually.

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