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NY Fed poll finds employees can expect pay hikes of 3% this year

The Federal Reserve Bank of NY surveyed retailers and service firms in the NY metro area, and factories through the state.

Long Island retailers surveyed predicted salaries will rise

Long Island retailers surveyed predicted salaries will rise more than 2 percent and as much as 4 percent this year. Photo Credit: iStock

Employees of service firms in the metropolitan area and factory workers across the state will see their wages increase about 3 percent this year, according to polls released Friday.

The Federal Reserve Bank of New York said 42 percent of the 100 retailers and service firms surveyed this month on Long Island, in New York City and its northern suburbs predicted salaries will rise more than 2 percent and as much as 4 percent this year. Another 28 percent forecast wage hikes of more than 4 percent.

Among the 100 manufacturers surveyed across the state, about half said salaries would increase between 2.1 percent and 4 percent. A further 19 percent predicted pay raises of more than 4 percent.

“Firms were also asked by what percentage they expected starting salaries for new workers to change in 2018 . . . the median expected change was 3 percent among manufacturers and 2 percent among service-sector respondents,” the bank said in a statement.

Both groups told the New York Fed that they are looking for workers.

Factory executives said job openings equal 2.6 percent of their total workforce, up from 1 percent in 2017. The typical plant in the survey has 50 employees.

Among service firms, managers said job openings equal 2 percent of their total workforce, up from 1.5 percent last year. The typical service company in the poll has 50 employees.

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