New Year, new wages—but maybe don’t get too thrilled.
While you might assume that annual raises are all good news, think again. According to a recent global report from consulting firm Korn Ferry, U.S. workers can expect only a marginal salary increase in 2026.
In the latest Korn Ferry Total Rewards Pulse Survey, 44% of leaders mentioned that their organizations plan to offer raises to at least 95% of their employees, with just 1% indicating no increases whatsoever.
Job Opportunities
- Policy Counsel, ACLU, Concord, New Hampshire
- Research Associates, JL Partners, New York
- Police Crime Analyst, Danville, Virginia
- Policy Associates, LHH, Tulsa
- Government Program Policy Specialist, Inora, New York
However, the anticipated increase is often lower than previous salary figures. Moreover, these increases are typically tied to projected market salaries, not necessarily reflecting real cost-of-living adjustments.
Essentially, we’re looking at an estimated 3.5% bump in 2026, which is just above the current U.S. inflation rate of 2.9%. Over the past year, median wages rose by 3.9% and 5.1% for the periods ending in June 2024 and June 2025, respectively.
Some sectors have even seen raises exceeding 10% to attract and keep certain workers post-pandemic.
Reasons for Concern
So, why the cautious outlook? Tom McMullen, head of Korn Ferry’s North American Total Rewards Expertise Group, expressed a sense of optimism about understanding these trends better.
This optimism stands in stark contrast to many American workers’ realities. In a previous Korn Ferry survey, 70% reported concerns that their living expenses outpaced their salaries, while 35% felt their pay didn’t reflect their skill value.
Debt Struggles
From a survey of 1,005 U.S. employees, over half (56%) indicated that their salary isn’t enough to manage existing debt and still save for the future. During the past year, 48% have relied on debt for essentials like food and utilities.
The most prevalent form of debt? Credit cards, with 71% of respondents using them, and 21% managing only minimum payments. A concerning 9% admit they can’t meet their minimum monthly payments, while just 27% manage to pay down their debt reliably each month.
What’s even more striking is that a significant portion of these individuals is missing out on key life milestones—22% have delayed retirement saving, 10% have foregone necessary medical care, and 16% have given up the idea of homeownership.
“What stands out in these findings is the widespread financial tension faced by employees. This situation, termed ‘survival debt,’ often occurs at the expense of crucial life milestones like homeownership or retirement savings. It highlights the immense economic pressure that affects workers’ decisions,” one analyst noted.
Without meaningful changes to wages and financial support systems, breaking the cycle of acquiring debt seems increasingly challenging.
If you’re keeping an eye on 2026 and want to take charge of your career now, consider starting a job hunt. Korn Ferry found that 76% of organizations are focused on stability while anticipating modest hiring increases. Additionally, 88% expect revenue growth, with 52% of those projecting growth of over 6%.
