Why those corporate bonuses actually aren't great for you
Companies are announcing raises and bonuses, but is Trump’s tax plan the reason?
“The vast majority are doing it to win battle for talent, not because of the tax situation. Companies are struggling to find new employees and they’re struggling to hold on to existing ones, so they have to raise wages,” said Mark Zandi, chief economist at Moody’s Analytics. “Wage pressures are going to develop more fully here in 2018 — this is something that’s been building,” he said.
Zandi also pointed out that a number of minimum wage increases were set to kick in at the beginning of 2018 asWalmart that a catalyst for pay increases. “This puts real pressure on companies like Walmart that hires a lot of people that are over minimum wage, but just above,” he said.