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flag U.S. employers plan average 3.8% pay raises in 2026, slightly down from 2025, due to inflation and labor market changes.

flag Employers across the U.S. are planning average pay increases of 3.8% for 2026, according to a recent survey of human resources professionals. flag The rise, slightly below the 2025 average of 4.1%, reflects ongoing inflation concerns and labor market shifts. flag Industries with high turnover, such as retail and hospitality, are offering larger raises to retain workers. flag Companies are also adjusting compensation strategies to balance budget constraints with competitive hiring needs.

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