Modest pay hikes next year could leave some workers lagging inflation

TL;DR

Employers anticipate modest pay hikes averaging 3.5% in 2027.
Salary increases have moderated since their peak in 2023.
Limited raises may cause some employees to fall behind inflation.
Companies are prioritizing raises for top performers and strategic areas.
High-tech and banking sectors project higher average raises (3.8% and 3.7%) compared to industries like retail.

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