Is a 2 percent annual pay raise considered a good raise in this economy?

Question

Is a 2 percent annual pay raise considered a good raise in this economy?

Answer 1

It not a GOOD raise anytime

Answer 2

With inflation at 4.18%, it's not a raise, it's a cost of living adjustment.  And not even a full one at that.

Answer 3

if it is 2% increase in the real income then it will be good for the economy... but if the income rises by 2% and inflation rises by 5% then in reality the real income has fallen by 3%.

Answer 4

Not really. Typically the CPI increases by about 3% (excluding food and energy). Most things are indexed to the CPI. In today's economy, you would want to try and get something higher than 3% if possible. Although, 2% is better than zero, so if you feel you can't get any more, be thankful for getting any raises, even though you are technically recieving less compensation value for your labor.

Answer 5

Yes. With low interest rates imposed by the Feds to stimulate investment and borrowing, the US economy is struggling. Employees likewise must bite the bullet and accept lower raises. I know gasoline prices are outrages and so are grocery prices but these are all tied to the energy costs and floods in the midwest. The free market forces are based on supply and demand. If you can in any way reduce your demand, the supply will come in line and thus reduce their prices. Try to be more independent as much as possible in consuming energy and food sources. Most companies and hurting from high energy costs and must maintain their costs. Some companies are laying off employees to cut costs. Better employed than trying to demand a high raise that can demise a company's bottom line.

Answer 6

it might keep up with inflation...