Skip to main content
  • Personal
  • Business
  • Foundation
    Close
    • Global
    • India
    • MENA
  • mySHRM Login
  • MySHRM
    • Dashboard
    • Account
    • Logout
SHRM
  • Membership
    • Membership

      As a SHRM Member®, you’ll pave the path of your success with invaluable resources, world-class educational opportunities and premier events.

      Membership Tiers
      • Professional
      • Student
      • Global
      • Executive
      • Enterprise
      Membership Benefits
  • Certification
    • SHRM Certification

      Demonstrate your ability to apply HR principles to real-life situations.

      • How to Get Certified
      • Eligibility Criteria
      • Exam Fees & Options
      • SHRM-CP
      • SHRM-SCP
      • Which Certification is Best for Me?
      • Recertification
      Prepare for the Exam
      • Exam Preparation
      • SHRM BASK
      • SHRM Learning System
      • Instructor-Led Learning
      • Self-Study
      Specialty Credentials

      Demonstrate targeted competence and enhance your HR credibility.

      Qualifications

      Gain a deeper understanding and develop critical skills.

      Seminars

      Stand out from among your HR peers with the skills obtained from a SHRM Seminar.

  • Events & Education
    • Events

      Demonstrate your ability to apply HR principles to real-life situations.

      • SHRM26 Annual Conference
      • BLUEPRINT 2025
      • Talent Conference & Expo
      • Linkage Institute
      • The AI+HI Project 2026
      State Conferences

      Attend a SHRM state event to network with other HR professionals and learn more about the future of work.

      Seminars

      Stand out from among your HR peers with the skills obtained from a SHRM Seminar.

      Webinars
  • Resources
    • Resources

      Stay up to date with news and leverage our vast library of resources.

      • Flagships
      • HR Research
      • Legal & Compliance
      • Latest News & Trends
      • Tools & Guides
      • Webinars
      HR Topics
      • AI in the Workplace
      • Civility at Work
      • Compensation & Benefits
      • Inclusion & Diversity
      • Talent Acquisition
      • Workplace Technology
      • Workplace Violence Prevention
      Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

  • Community
    • Find a SHRM Chapter

      Easily find a local professional or student chapter in your area.

      • SHRM Northern California
      SHRM Connect

      Post polls, get crowdsourced answers to your questions and network with other HR professionals online.

      Membership Councils

      Learn about SHRM's five regional councils and the Membership Advisory Council (MAC).

      Volunteers

      Learn about volunteer opportunities with SHRM.

  • Shop
    • SHRM Store

      Shop for HR certifications, credentials, learning, events, merchandise and more.

      Workplace Essentials
      • SHRM Memberships
      • SHRM Certification
      • Specialty Credentials
      • HR Tools & Tech
      Education
      • Seminars
      • eLearning
      • Books
      Merchandise
      • Accessories
      • Apparel
      • Office & Home
Become a Member
Renew
Rejoin Now
Renew
Close
  • Personal
  • Business
  • Foundation
  • Membership
    back
    Membership
    • Membership

      As a SHRM Member®, you’ll pave the path of your success with invaluable resources, world-class educational opportunities and premier events.

      Membership Tiers
      • Professional
      • Student
      • Global
      • Executive
      • Enterprise
      Membership Benefits
  • Certification
    back
    Certification
    • SHRM Certification

      Demonstrate your ability to apply HR principles to real-life situations.

      • How to Get Certified
      • Eligibility Criteria
      • Exam Fees & Options
      • SHRM-CP
      • SHRM-SCP
      • Which Certification is Best for Me?
      • Recertification
      Prepare for the Exam
      • Exam Preparation
      • SHRM BASK
      • SHRM Learning System
      • Instructor-Led Learning
      • Self-Study
      Specialty Credentials

      Demonstrate targeted competence and enhance your HR credibility.

      Qualifications

      Gain a deeper understanding and develop critical skills.

      Seminars

      Stand out from among your HR peers with the skills obtained from a SHRM Seminar.

  • Events & Education
    back
    Events & Education
    • Events

      Demonstrate your ability to apply HR principles to real-life situations.

      • SHRM26 Annual Conference
      • BLUEPRINT 2025
      • Talent Conference & Expo
      • Linkage Institute
      • The AI+HI Project 2026
      State Conferences

      Attend a SHRM state event to network with other HR professionals and learn more about the future of work.

      Seminars

      Stand out from among your HR peers with the skills obtained from a SHRM Seminar.

      Webinars
  • Resources
    back
    Resources
    • Resources

      Stay up to date with news and leverage our vast library of resources.

      • Flagships
      • HR Research
      • Legal & Compliance
      • Latest News & Trends
      • Tools & Guides
      • Webinars
      HR Topics
      • AI in the Workplace
      • Civility at Work
      • Compensation & Benefits
      • Inclusion & Diversity
      • Talent Acquisition
      • Workplace Technology
      • Workplace Violence Prevention
      Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

  • Community
    back
    Community
    • Find a SHRM Chapter

      Easily find a local professional or student chapter in your area.

      • SHRM Northern California
      SHRM Connect

      Post polls, get crowdsourced answers to your questions and network with other HR professionals online.

      Membership Councils

      Learn about SHRM's five regional councils and the Membership Advisory Council (MAC).

      Volunteers

      Learn about volunteer opportunities with SHRM.

  • Shop
    back
    Shop
    • SHRM Store

      Shop for HR certifications, credentials, learning, events, merchandise and more.

      Workplace Essentials
      • SHRM Memberships
      • SHRM Certification
      • Specialty Credentials
      • HR Tools & Tech
      Education
      • Seminars
      • eLearning
      • Books
      Merchandise
      • Accessories
      • Apparel
      • Office & Home
Become a Member
Renew
Rejoin Now
Renew
    • Global
    • India
    • MENA
SHRM
mySHRM Login
  • MySHRM
    • Dashboard
    • Account
    • Logout
Close

  1. Topics & Tools
  2. Workplace News & Trends
  3. Compensation & Benefits
  4. Wages and Salaries Up 5% for Private Industry Workers in 2021, Less Than Inflation
Share
  • Linked In
  • Facebook
  • Twitter
  • Email

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus convallis sem tellus, vitae egestas felis vestibule ut.


Error message details.

Copy button
Reuse Permissions

Request permission to republish or redistribute SHRM content and materials.


Learn More
News

Wages and Salaries Up 5% for Private Industry Workers in 2021, Less Than Inflation

Labor costs increased at the highest rate in two decades

January 28, 2022 | Stephen Miller, CEBS

A green arrow is seen on a one hundred dollar bill.


During 2021, wages and salaries rose 5 percent for private industry workers in the U.S., up from 2.8 percent in 2020, the Bureau of Labor Statistics (BLS) reported on Jan. 28. Benefit costs for private industry workers in 2021 rose 2.9 percent, up from 2.1 percent the year before.

Private-sector pay and benefits together—what the BLS calls "total compensation costs"—rose 4.4 percent during 2021, up form 2.6 percent for 2020.


However, when adjusted for inflation, "constant dollar" private wages and salaries fell 1.9 percent for the 12 months ending December 2021. 

Consumer prices rose 7 percent year-over-year in December 2021, the largest 12-month increase in nearly 40 years, the BLS reported on Jan. 12, adding pressure on employers to raise wages going into 2022.

[Update: As U.S. inflation continues to surge, consumer prices rose to 7.9 percent year over year in February 2022, the BLS reported on March 10.]

SHRM Online has compiled the following articles looking at rising pay rates and inflation.

Labor Costs Grew at Fastest Pace in Two Decades

Economists caution that there are numerous factors contributing to high inflation during the pandemic, especially an overwhelmed supply chain. But labor costs are a significant contributor to rising prices. And the current tight labor market is encouraging many workers with bargaining power to switch jobs and demand more pay, raising the risk of a destabilizing inflation dynamic known as a wage-price spiral.

(Wall Street Journal)

Inflation Is Wiping Out Pay Increases

The same strong economic recovery that is emboldening workers is also driving up inflation, leaving most Americans with less spending power than they had a year ago.

In interviews with more than a dozen workers, many said that despite considerable pay raises—as much as 33 percent, in some cases—they were still struggling to cover basic expenses. Several workers said they had taken second jobs to keep up with rising costs for groceries, gas and rent.

(Washington Post)

Companies Revising Pay-Budget Expectations

Employers have been continually adjusting their salary budgets as pay pressures have escalated. While most estimates for salary budget growth in midyear 2021 were in the 3 percent to 3.3 percent range, near the end of the year consensus expectations were closer to 4 percent.

More recently, in a December survey of 551 senior U.S. HR leaders, 51 percent of respondents said their organization expected average merit increases of more than 5 percent, while 88 percent said their company expects average merit increases of more than 3 percent.

(SHRM Online)

Total Rewards Strategies for 2022

The coming year promises to be the most competitive yet for employers. What worked in the past won't cut it in this new, fiercely competitive environment. Generous salaries are but a start. Savvy employers must develop an aggressive compensation strategy that includes quality of life benefits, flexible work arrangements, and performance-based incentives. Those that fail to step up their game will find themselves on the losing side of the talent war.

(BenefitsPro)

Will 2022 Break Compensation Budgets?

Pressure on worker pay is not equal for all categories of jobs. Employers can look for ways to shift funds in compensation budgets to jobs that are particularly hard to fill and retain, ranging from front-line hourly positions to science, technology, engineering and math positions. For example, as more companies seek to manage supply chain and cybersecurity risks, pay for expertise in those areas has been soaring.

Other steps to manage pay structures include developing wider pay ranges for hard-to-fill jobs to give hiring managers greater latitude when making job offers and gathering real-time information on the state of the market from internal and external recruiters. For specific jobs, it may be necessary to conduct salary surveys and market pricing analyses more frequently than the usual annual practice.

(SHRM Online)


Compensation Management


Artificial Intelligence in the Workplace

​An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.



Related Content

Kelly Dobbs Bunting speaks onstage at SHRM24
(opens in a new tab)
News
Why AI+HI Is Essential to Compliance

HR must always include human intelligence and oversight of AI in decision-making in hiring and firing, a legal expert said at SHRM24. She added that HR can ensure compliance by meeting the strictest AI standards, which will be in Colorado’s upcoming AI law.

(opens in a new tab)
News
A 4-Day Workweek? AI-Fueled Efficiencies Could Make It Happen

The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.

(opens in a new tab)
News
How One Company Uses Digital Tools to Boost Employee Well-Being

Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.

HR Daily Newsletter

Stay up to date with the latest HR news, trends, and expert advice each business day.

Success title

Success caption

Manage Subscriptions
Our Brands

SHRM Foundation Logo
SHRM Executive Network Logo
CEO Circle Logo
SHRM Business Logo
SHRM Linkage Logo
SHRM Labs
Overview

  • About SHRM
  • Careers at SHRM
  • Press Room
  • Contact SHRM
  • Book a SHRM Executive Speaker
  • Advertise with Us
  • Post a Job
Advocacy

  • Workforce Development
  • Workplace Inclusion
  • Workplace Flexibility & Leave
  • Workplace Governance
  • Workplace Health Care
  • Workplace Immigration
  • State Affairs
  • Global Policy
  • Advocacy Team
  • Take Action
  • Generation Cares
  • The Section 127 Coalition
Member Resources

  • Ask An Advisor
  • SHRM Newsletters
  • SHRM Flagships
  • Topics & Tools
  • Find an HR Job
  • Vendor Directory

© 2025 SHRM. All Rights Reserved
SHRM provides content as a service to its readers and members. It does not offer legal advice, and cannot guarantee the accuracy or suitability of its content for a particular purpose. Disclaimer

Follow Us

  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
  • YouTube

  1. Privacy Policy

  2. Terms of Use

  3. Accessibility

Join SHRM for Exclusive Access to Member Content

SHRM Members enjoy unlimited access to articles and exclusive member resources.

Already a member?
Free Article
Limit Reached

Get unlimited access to articles and member-exclusive resources.

You've reached the limit of 1 free article this month. Join to access unlimited articles and member-only resources.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join the Executive Network and enjoy unlimited content.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join and enjoy unlimited access to SHRM Executive Network Content.

Already a member?
Unlock Your Career with SHRM Membership

Please enjoy this free resource! Join SHRM for unlimited access to exclusive articles and tools.

Already a member?

Your membership is almost expired! Renew today for unlimited access to member content.

Renew now

Your membership has expired. Renew today for unlimited access to member content.

Renew Now

Your Executive Network membership is nearing its expiration. Renew now to maintain access.

Renew Now

Your membership has expired. Renew your Executive Network benefits today.

Renew Now