The end of 2008 saw a serious dent to bonuses, due to the financial crisis. And this year saw salary freezes at a number of companies. As a result, raises have been few and far between. But things might change in 2010. Hewitt Associates points out that only 13% of companies plan to freeze salaries next year. You might not get a huge raise, but you might get something more than you got this year. And that could be helpful to many who are struggling right now. It will be especially helpful if economic recovery results in inflation next year. So far, inflation has been relatively modest, but if prices rise and salaries don’t, many people will find it difficult to keep up with their obligations.
The job market itself is likely to take longer to recover. Even though there are signs of stability, the fact of the matter is that it took three years after the last two recessions for unemployment to return to pre-recession levels. And there are some economists who believe that we may not see a return to pre-recession levels of employment for even longer this time. One of the biggest reasons is to do with the fact that many industries and companies have been making substantial changes to the way the do things. There may be no need for a great deal of hiring.
Image source: sxc.hu
Post from: EveryJoe