NEW YORK (CNNMoney.com) -- The good news is that you're more likely to get a raise next year. But the bad news is that the boost may not be as big as you'd like.
An estimated 14% of employers will freeze salaries across the board in 2010, down from 30% in 2009, according to a survey released Monday by consulting and outsourcing firm Mercer.
Of the organizations that plan to give raises next year, the average base pay increase is projected to be a paltry 2.7%, down from 3.2% in 2009, and even lower than what was predicted earlier this year. In April, a Mercer survey projected pay raises in 2010 to be 2.9%.
But more employers offering pay increases is a good sign for the job market overall, according to Mercer.
"This is still positive news given the fewer firm-wide pay freezes and staff reductions planned now compared to this time last year," Loree Griffith, a principal with Mercer's rewards consulting business, said in a statement.
As employers prepare for an economic recovery, they are focusing on retaining the talent they already have, Mercer said.
"Recognition programs, career development, training opportunities and creative communication campaigns -- efforts that help keep employees engaged and motivated -- along with incentive pay strategies will give companies a competitive edge as business begins to improve," said Griffith.
Increases by industry. The best raises will be in the consumer goods and high-tech industries, where employers are predicted to increase pay 3%.
The smallest raises will be in the education industry, where pay is projected to increase less than the average rate, with a predicted base pay bump of just 2.2%. The survey projects a 2.4% pay raise in the health and medical insurance sector.
Less than 5% of consumer goods and insurance firms are predicted to have pay freezes next year, while 20% of durable goods manufacturers and 18% of services firms will continue to freeze pay, the survey showed.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.84%||3.87%|
|15 yr fixed||2.87%||2.95%|
|30 yr refi||3.89%||3.97%|
|15 yr refi||2.97%||3.04%|
Today's featured rates:
The company has received at least two reports of illness caused by the contamination. More
Abenomics, Japan's economic revival plan, is falling way short of expectations. More
The social network and Eutelsat are teaming up to launch a satellite that will bring Internet to sub-Saharan Africa in 2016. More
Smarties, a Halloween candy staple, have been around for 66 years. Three Millennial women are revolutionizing it. More