Workers at factories across New York State and at service firms in the metropolitan area are likely to receive wage increases in 2016 that are slightly above the inflation rate, according to surveys released Wednesday.
The Federal Reserve Bank of New York said the typical plant expects to boost its employees’ salaries by 2.8 percent next year. That’s down from the average increase of 3.3 percent in 2015.
The bank polled about 100 manufacturers across the state earlier this month.
In a separate survey of about 100 service firms in the metro area, the bank found salaries were likely to rise 3.4 percent, on average, in 2016. That’s better than their 2.6 percent increase this year.
The poll of service firms on Long Island, in New York City and its northern suburbs was conducted this month.
The Federal Reserve System has predicted inflation will be about 2 percent next year for the country. And John A. Rizzo, chief economist for the Long Island Association business group, said he expects inflation in Nassau and Suffolk counties to also be “about 2 percent . . . with tightening labor markets and year-over-year comparisons of energy prices no longer declining” in 2016.
Inflation in the 31-county metro area that includes Long Island has been about 1 percent so far this year. In November, consumer prices rose 0.6 percent, year over year.
The New York Fed found that the biggest rise in employer costs isn’t wages but health insurance and other employee benefits.
Both manufacturing and service firms predicted their spending on employee benefits will climb just under 7 percent, on average, in 2016 after growing 6.5 percent this year.
The bank said, “Energy costs, which were reported to have declined in 2015, were expected to increase only marginally in 2016,” by less than 1 percent.
Overall, factories and service firms expect the increase in their expenses to be 4 percent to 4.4 percent next year. In 2015, expenses grew 3.5 percent on average, the bank said.