It’s not just Wall Street bankers who are seeing their bonus slump.
Year-end bonuses at US small and medium-size businesses fell 9.7% from 2021, declining to an average of $526 from $582, according to payroll-services company Gusto.
With job cuts mounting at technology and financial firms, incentives to keep workers are shrinking.
“Bonuses fell the most in sub-sectors such as finance, insurance, and tech, where the labor market is the weakest,” said Luke Pardue, economist at Gusto.
Average Bonus Shrinks at US Small Businesses | Bonuses were down 9.7% last year
In spite of the declines, employees in the finance industry still got the biggest bonuses — an average of $2,148 each compared with less than $200 for workers at salons or restaurants.
Overall in New York City, the securities industry’s bonus pool is expected to decline 22% from the previous year, when the average payout was $257,500, according to estimates from the state’s comptroller, Thomas DiNapoli.
Bonuses at small firms did increase in sectors where the labor market remains tight and employers are struggling to hire and retain staff, such as tourism and manufacturing, Gusta data show.
Overall average hourly earnings rose 3.9% over the past twelve months, down from a peak of 6% in May 2022. December was the first time wages have grown by less than 4% annually since October 2021.
The data come from a survey of businesses on Gusto’s payroll and benefits platform.
This article was provided by Bloomberg News.