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Workers have high hopes for pay hikes next year. Perhaps too high

By Matthew Boyle

09 Dec 2022 · 4 min read

Editor's Note

Inflation and job security have employees worried going into pay negotiations this year. Bloomberg analyzes how employers are gaining back leverage that could see workers accept little or no pay rise.

The pay negotiation season is looking increasingly fraught this year as workers fret about 8 percent inflation - and their job security.

While the labor market remains tight, evidenced by last month's better-than-expected increases in both jobs and wages, employers are gaining back some leverage just in time for the tough conversations between bosses and employees to begin. This week Goldman Sachs said smaller bonuses and job cuts are coming, while the running tally of tech layoffs hit 52,771 in November, the highest monthly total for the sector since Challenger, Gray & Christmas began keeping detailed industry data in 2000.

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