Fewer workers get pay raises this year despite thriving economy
Despite a thriving economy, 62 percent of employed Americans did not see a pay hike this year.
Bankrate.com Chief Financial Analyst Greg McBride said this number comes as a surprise because in 2017 it was 52 percent and he thought that number was high.
"What we are seeing is that employers who are giving out raises, it's more likely to be focused on performance-based raises, those who took on additional responsibility or were promoted," he said.
He said across-the-board cost-of-living raises are a thing of the past. Only 1 in 4 workers got cost-of-living increases.
For those who don't see pay raises, often it's because there's a surplus of workers or employers are not earning enough profit.
An employer absorbing higher health care costs also is a form of a raise even if you don't see it in a paycheck, said McBride.
Despite the dismal bump in pay, the survey also found that only 25 percent of employees will be looking for a better-paying job in 2019.
Some employees are just trying to hang on to what they have. For example, 8 in 10 Baby Boomers ages 64 to 72 did not get a salary increase this year or a better paying job in the past 12 months.
Millennials ages 18 to 27 were most likely to get a pay raise, but they were also more likely to take on more responsibility and more likely to look for another job next year.
McBride said the best way to capitalize on the tight labor market is to look at what additional training or certification you have or can get that will separate you from your peers and put you into the position where you can command a higher rate of pay.