Survey Reveals 60% of Businesses Expect No Wage Increases
August 12, 2015
Survey Reveals 60% of Businesses Expect No Wage Increases
Commercial and Light Industrial Will See Most Hiring
Projections for Q3 and Q4
_____________________
OKLAHOMA CITY, Aug. 12, 2015 - Despite the recent drop in unemployment and rising expectations that wage increases will follow, Express Employment Professionals today released new survey results that cast doubt on the belief that workers' paychecks will soon see increases.
The study reinforces last week's U.S. Department of Labor report that showed wage growth last quarter was the slowest in 33 years.
In a poll of businesses, Express found that the majority of respondents don't expect much wage growth in the third or fourth quarters either.
Respondents were asked, "Over the next six months, do you expect wages in your market to increase, decrease, or stay the same?"
In response, 60 percent said "stay the same," while 39 percent said "increase." Just one percent said wages would decrease.
Who's Hiring?
Businesses were also asked in which areas they plan to hire people in the third quarter. "Commercial and light industrial" was the most popular choice at 40 percent. Notably a full quarter, 25 percent, said they didn't have plans to hire.
"It's a mixed bag for the rest of the year. Businesses are the ones ultimately making hiring decisions, and most aren't expecting to see wage growth in their communities," said Bob Funk, CEO of Express, and a former chairman of the Federal Reserve Bank of Kansas City. "But on the other hand, 75 percent expect to hire workers in the third quarter.
"While the labor market dynamics would indicate that we should expect wage growth, the facts on the ground seem to suggest otherwise, at least in the short term."
The survey of 373 businesses was conducted in July 2015; the respondents are current and former clients of Express Employment Professionals.
###
If you would like to arrange for an interview with Bob Funk to discuss this topic, please contact Sherry Kast at (405) 717-5966.
About Robert A. Funk
Robert A. "Bob" Funk is chairman and chief executive officer of Express Employment Professionals. Headquartered in Oklahoma City, the international staffing company has franchises in the U.S., Canada and South Africa. Under his leadership, Express has put more than five million people to work worldwide. Funk served as the Chairman of the Federal Reserve Bank of Kansas City and was also the Chairman of the Conference of Chairmen of the Federal Reserve.