Amid slowing wage growth, new jobs and salary negotiations still pay off
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Wage growth is slowing down according to the latest report from the Labor Department, which found that average hourly earnings rose 4.2% year-over-year in March — compared to nearly 6% one year ago.
Price inflation is moderating, but it’s still running about 1.5% hotter than wage increases, meaning the average worker is losing ground. Workers are trying to close the gap by boosting their own paychecks.
In a recent survey, in spite of rising layoffs, slower hiring and fewer job openings, “A majority of Americans in the workforce tell us they plan to look for a job over the next year,” said Bankrate.com senior economic analyst Mark Hamrick.
Hamrick said workers who quit and find a new job typically get a raise about double that of workers who stay put. Meanwhile, according to a new report from the Pew Research Center, when people do get a new job, only about 3-in-10 actually ask for a higher salary than the employer initially offers.
Pew’s Rachel Minkin said there’s a gender gap here: “Women are more likely than men to say they didn’t feel comfortable asking for higher pay.”
There’s also a gap when candidates do try to get a better deal. “Women are more likely than men to say they were only given what was initially offered after asking for higher pay,” Minkin said.
Young workers, meanwhile, feel the most uncomfortable asking for more money, but are the least satisfied with the salary they actually get.
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