Remember those surveys last summer forecasting steady 3.6% salary increases for 2009? Forget about it. U.S. workers, on average, are now projected to receive annual merit increases of between 2.3% and 3.0%, according to surveys by Watson Wyatt and Hewitt Associates.
“Three percent has always been this psychological threshold that companies have never been willing to cross before,” Ken Abosch of Hewitt told The Wall Street Journal. “Now it looks like they’ve blown that away. This is really dramatic.”