The Federal Reserve’s most recent interest rate hike is another sign of a strengthening economy. That may be good news for employees who are angling for a raise.
According to WorldatWork’s 2016-2017 Salary Budget Survey, the median increase for salary budgets in the U.S. is estimated at 3% for 2017. That’s on par with 2016, when the Bureau of Labor Statistics (BLS) estimates that median weekly earnings for full-time workers increased by 2.9%.
While an uptick in wages is encouraging, wage growth has fallen below expectations throughout the period of economic recovery following the 2008 financial crisis. The Economic Policy Institute puts the target growth rate for nominal wages at 3.5% to 4%. Year-over-year, actual wage growth for private employees notched in at 2.5%, as of June 2017. (See also: 25 Highest-Paying Companies (and Jobs) in America .)
There is, however, a potential silver lining for workers in certain industries. Glassdoor recently released its Local Pay Report for May showing which jobs have had the fastest wage growth since this time last year.
Show Me the Money: Jobs with the Best Raise Prospects
Glassdoor’s Local Pay Reports rely on salary data collected from U.S. workers to estimate trends in pay for 10 U.S. metro areas and the country as a whole. These reports, which are updated monthly, estimate year-over-year growth in median base pay for 60 jobs across more than 15 job categories.
With that in mind, the following table highlights the top 10 jobs that reported the fastest wage growth in May, compared to the same time last year.
Job Title Median Base Pay Year-Over-Year % Growth
Recruiter $51,216 7.4%
Customer Service Manager $54,552 7.1%
Restaurant Cook $29,097 7.0%
Warehouse Associate $40,882 6.7%
Bank Teller $28,744 6.1%
Maintenance Worker $43,175 5.7%
Store Manager $48,364 4.9%
Cashier $27,492 4.6%
Sales Representative $47,629 4.6%
Registered Nurse $66,305 4.5%
It’s apparent that all the jobs that made it into the top 10 had a rate of wage growth that outpaced the 3% projections for 2017. The question is, which of these jobs have the potential to sustain that rate of growth over the long term?
In the current employment environment, it makes sense that recruiters are seeing wages grow. Total nonfarm payroll employment increased by 138,000 positions in May. That means companies are still seeking candidates, creating a need for recruiters to handle the influx of applications. Unemployment has remained under 5% for a year, which means the country may be close to full employment , however. If companies pull back on hiring, wage growth for recruiters may begin to slow down.
Customer service managers come next on the list and the outlook for long-term continued wage growth is encouraging. Research from PayScale shows that retail and customer service ranked third for the industries with the fastest year-over-year wage growth through the first quarter of 2017, following education and construction. Consumer spending is up year-over-year as well, with the 14-day rolling spending average hitting $103 through the third week of June, compared to $86 for the same time last year. If consumer spending remains consistent or increases, the retail and customer service industries could continue to increase wages, with workers reaping the direct benefits.
Where Wage Growth Is Lagging
While some jobs are performing better than others where wage growth is concerned, others are falling well behind expectations. Glassdoor also ranked the jobs at the lower end of the spectrum, where wage growth was slowest year-over-year.
Job Title Median Base Pay Year-Over-Year % Growth
Design Engineer $69,337 -2.7%
Java Developer $71,359 -1.9%
Operations Analyst $52,589 -1.1%
Web Developer $63,355 -0.2%
Tax Manager $92,370 -0.1%
Communications Manager $66,550 -0.1%
Paralegal $47,498 0.4%
Web Designer $48,934 0.5%
Physical Therapist $73,946 0.6%
Technician $44,700 0.8%
While workers in these jobs saw their wages grow the least compared to last May, the majority are earning higher salaries compared to the jobs where wages grew faster. These jobs also tend to require more education and training than most of the jobs where wages are growing fastest, with the exception of registered nurses and, probably, recruiters. In other words, less skilled workers may be poised to benefit the most from faster wage growth. (See: 6 High Paying Jobs with Low Education Requirements .)
Is Now a Good Time to Ask for a Raise?
Whether it makes sense to ask for a raise right now isn’t an easy question to answer. While wages in the U.S. are set to rise through 2017, some jobs may see bigger bumps than others if the trends identified by Glassdoor continue. (See:
When Is the Best Time to Ask for a Raise? )
If you’re thinking of approaching your employer about a raise, first step back and consider your broader industry and how your company is positioned. Are wages increasing steadily or have they been stagnant for an extended period of time? Are the products or services your employer offers in demand? Is your company’s bottom line healthy? In other words, can your employer afford to give you a raise?
Next, think about what it is you bring to the table that might justify a raise. Being able to assign a specific value to the tasks you perform for your employer can make it easier to determine whether a raise is in order, and it helps you create a basis for arguing your case. The more prepared you are to back up your request for a raise, the better the odds of seeing your paycheck increase.
