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flag In 2026, most Iowa and Illinois firms plan 3.5% pay raises, with rising use of uniform raises and job cuts due to AI, affecting worker motivation and job stability.

flag In 2026, most Iowa and Illinois companies are expected to give average pay raises of 3.5%, with smaller firms offering around 4% and large corporations about 3%. flag A growing 44% of employers are using a “peanut butter” approach, distributing raises evenly across all workers regardless of performance, driven by concerns over fairness and morale. flag While nearly all companies plan to raise pay, 66% also anticipate job cuts due to automation and AI. flag Despite hiring in some areas, the shift may reduce motivation for high performers and create uncertainty in the job market.

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