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Workers are less likely to negotiate raises, widening pay gaps
The article notes US base pay increases average about 3.4% in 2026 and are expected around 3.5% in 2027, with 89% of increases tied to merit.
A Yahoo Finance feature argues that many corporate employees do not actively negotiate pay, even as scheduled raises remain a key part of compensation in the US. It cites expectations for an average base pay increase of about 3.5% in 2027, slightly above the 3.4% average reported for 2026, and says 89% of pay increases are linked to merit rather than cost-of-living changes.
The story highlights that 57% of employees say they have never asked for a pay increase, which it says can leave some workers falling behind, particularly those in higher-paying roles. It also points to a specific disparity: among workers earning $125,000 or more, 30% of tenured employees end up making less than newer coworkers.
Using a hypothetical example from the article, it describes an employee who stayed eight years and received $2,600 in raises, then learned a colleague who left and returned received $15,000 more. The piece frames the employee’s question as whether quitting is necessary to secure better pay.
The article advises against using a coworker’s package as the sole benchmark, saying a colleague’s compensation may reflect different role difficulty or performance, or that the company may be using the higher offer to cover replacement needs. It also recommends an honest comparison of one’s own skills and knowledge versus the coworker, with the idea that the current role may or may not justify a raise based on value to the business.