Los Angeles -- Despite economists' predictions that low unemployment and high wage growth would lead to pay raises for Americans, a survey from personal finance website GOBankingRates revealed that most employees (70%) did not receive a bump in pay in 2018.
The survey, which sought to uncover if Americans are benefiting from the strong labor market, revealed that more women received raises than men this year. Yet it represents only a small step toward closing the gender wage gap.
"The survey results show that women got raises at a slightly higher rate than men," said Cameron Huddleston, GOBankingRates' Life + Money columnist. "But that doesn't mean the gender gap is closing because the pay raises women got were smaller than what men got, on average."
"Our survey shows that, clearly, many Americans are not feeling the effects of a strong labor market," said Huddleston. "The majority of respondents did not get a raise, and more than half of those who didn't get a raise don't expect to get one before the year ends."
Thirty percent of baby boomers who received a pay raise said that increases in cost of living prompted their employers to give raises. In a separate report, GOBankingRates found that inflation rates are far outpacing wage growth, making it difficult for employees to reap the benefits of a strong labor market.
Other insights from the report revealed that employers were most likely to give a raise if employees had 'accomplished or exceeded goals and expectations’ and of those who did not receive a raise, one in three will look for a new job in 2019.
For more information visit www.gobankingrates.com.