Here’s why you may get a smaller pay raise next year

Key Points

The typical worker will get a 4.1% annual raise for 2025, down from 4.5%, according to a WTW survey.
That growth is still high relative to the recent past.
Company pay increases are largely dictated by supply-and-demand dynamics in the labor market.
The job market has cooled from a scorching level in 2021 and 2022.

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