Survey: Firms increasing wages and enlarging payrolls

A new survey from the National Association for Business Economics (NABE) found more employers increased wages and enlarged payrolls during the second quarter of 2014, Time magazine reported.

Growing revenue is expected to help the economy continue to grow and nearly 25 percent of the respondents believe that real gross domestic product (GDP) will increase by more than 3 percent in 2015. The research from the NABE surveys business leaders, consultants and economists in a plethora of different fields and sectors. Some of the industries that were included in the survey were goods-producing, transportation, finance and services sectors.

The growing confidence of business leaders is good news for workers since it appears that more raises and job opportunities are becoming available. Business executives and other consultants are more assured by the state of the economy right now.

The research found 43 percent of the 79 economists who were surveyed reported their firms increasing wages or upping payroll in the second quarter, up 35 percent from the previous year.

"For the third survey in a row, an increasing share of panelists reported rising wage costs last quarter," said Jack Kleinhenz, the president of the NABE, according to Reuters.

First report of no declining wages in nearly 2 years
The 2014 report has no respondents who said they were decreasing wages at their firm, which was the first time since October 2012 since that happened.

"It's not surprising that we would see some reporting of rising wage costs," said Kleinhenz, according to Reuters. "As we get to the point where we have less in the labor market to supply, I think firms are recognizing that's something that they have to do. If there has been a chronic shortage of supply for skilled labor, you may need to raise wages for certain occupations."

Ken Simonson, the chief economist for the Associated General Contractors of America, explained that sales were going up since companies finally needed to hire more employees to keep up with the nation's growing demand, Time magazine reported. Simonson added Congress has avoided several financial crises, which has many employers believing the economy will continue to surge and make it safer for businesses to invest.

As payroll departments become larger, many small businesses should consider looking toward outsourced payroll plans to help companies focus on other important tasks.

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