Where Will Your Salary Be Next Labor Day?

September 04, 2011

Job employment and competitive salaries are essential components to the housing recovery. Homeowners without jobs or who don’t make enough to survive often cannot cover Chicago real estate mortgage payments, let alone buy new homes.

While the unemployment rate continues to struggle, there is positive news pertaining to salaries.

piggy bank house with coins dropping inAccording to a recent survey, salaries for Chicago workers are expected to increase more next year than the national average.

Lincolnshire-based Aon Hewitt surveyed 1,494 large U.S. companies in June and July for its annual U.S. Salary Increase Survey.

The results showed a 2.9 percent base salary increase projection for 2012 for salaried exempt (employees who do not receive overtime pay), executives, salaried nonexempt (employees who receive overtime pay) and non-union hourly workers.

That’s a slight increase from 2011 for all groups – salaried exempt (2.7 percent), executive (2.8 percent), salaried nonexempt (2.8 percent) and non union hourly (2.7 percent), and much better than the record-low pay raises workers saw in 2009 of 1.8 percent.

Chicago projections for this year were at 2.8 percent. Next year, salaries for Chicago workers are expected to rise 3 percent.

Chicago is one of five cities with raises expected above the national average.

The other four:

*Detroit: 4 percent

*Dallas: 3.4 percent

*Houston: 3 percent

*Milwaukee: 3 percent

“Three percent is the new 4 percent, meaning we are not likely to be back to the 4 percent levels of the late 1990s any time soon,” said Ken Abosch, Aon Hewitt’s Compensation group leader. “Employees should also keep in mind that despite employers anticipating increases, if current economic conditions continue, the 2012 projections may come in lower than anticipated.”

Cities that can expect lower-than-average salary increases in 2012 include Washington, D.C. (2.8 percent), New York (2.7 percent) and Philadelphia (2.7 percent).

Aon Hewitt also lists industries that can expect to see the highest salary increases in 2012. Among them, unbelievably enough, is the real estate industry at 3.6 percent and the construction industry at 3.5 percent.

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Categories: Economy

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