More Than 1 in 3 Companies Won’t Give Cost-of-Living Raises in 2027

The U.S. Bureau of Labor Statistics reported on October 14 that gas prices are up 34.2% and ground beef prices are up 5.4% over the past year. As the cost of living climbs, employees may be counting on raises in 2027 to keep pace. To find out what companies are planning for raises, ResumeTemplates.com surveyed 1,430 business leaders in October 2026.

Key findings:

• 36% of companies won’t give a cost-of-living raise in 2027
• 56% of companies giving raises say half or fewer of their employees will get one
• Only 10% of companies giving raises will give one to every employee
• 35% of companies giving a cost-of-living raise will give employees 3% or less on average
• 25% of companies won’t give a holiday bonus this year
• 37% of business leaders say mid-level employees should be the top priority for raises
• 76% of business leaders say it’s an employer’s job market right now

1 in 6 Companies Don’t Plan on Giving Any Raises in 2027

In all, 17% of companies don’t plan on giving any raises. Some of these companies have ruled them out, most often because their business leaders say there’s no money. The rest haven’t decided yet, and some are waiting to see how revenue and profits turn out.

“Cut costs where we can. The stakeholders are even taking a cut,” wrote one manager whose company has ruled out raises. Business leaders at other companies that have ruled them out point to the economy, tariffs, government decisions, contract terms, or where top leadership stands on pay.

At one company that hasn’t decided on raises, a business leader wrote: “Would like to give raises across the entire company, budget doesn’t allow.”

Only 1 in 10 Companies Giving Raises Will Do It Company-Wide

Working at a company that gives raises doesn’t mean every employee will get one in 2027. Only 10% of those companies will give every employee a raise, and 56% will give one to half or fewer.

One manager whose company is giving raises to half or fewer of its employees wrote: “Quite honestly, they’re cheap. They only claim to give raises to the top performers and they’ve made the goals nearly impossible to achieve, so very few people are even considered strong performers.”

More Than 1 in 3 Companies Giving Cost-of-Living Raises Won’t Go Above 3%

Of the companies that are giving a cost-of-living raise, 35% will give employees 3% or less on average. Raises at this level fall short of keeping up with rising prices that workers are currently experiencing.

A business leader whose company plans an average cost-of-living raise of 3% or less explained: “There is a usual annual budget increase, which is reflected in raises, normally equal to inflation. But this coming year, the adjustment will be lower than inflation.”

Across all companies, 36% won’t give a cost-of-living raise at all. At one of these companies, a business leader wrote: “We are not planning on significant raises. We are looking to cut costs, and by keeping salaries down, we will be effectively cutting some of our costs.”

Cost-of-living raises aren’t the only thing many employees will go without: this year, 25% of companies won’t give a holiday bonus. “The environment in the economy is risky and we want to be very focused and cautious,” wrote a business leader at one of those companies.

“When a cost-of-living raise doesn’t keep up with rising prices, employees need to ask questions,” says Julia Toothacre, Chief Career Strategist at ResumeTemplates.com. “It’s normal to ask your manager, leadership, or HR not only why they made this decision, but also how they plan to compensate for the increase in living costs. If you already plan to speak to your manager, it’s important to bring evidence of your performance and state your case with facts.”

More Than 1 in 3 Business Leaders Say Mid-Level Employees Should Come First

Mid-level employees are business leaders’ top priority for a raise, chosen by 37%. A business leader who picked mid-level employees wrote: “We need to keep our staff happy. The mid level staff are the ones who need it the most and it will boost their morale.” For another business leader who chose mid-level employees, the concern is the cost of turnover: “Retention because it is so expensive to recruit and train new employees.”

3 in 4 Business Leaders Say It’s an Employer’s Job Market

Employees who don’t get a raise and start job hunting may face hard choices, as most business leaders say it’s an employer’s job market right now.

One business leader who agrees it’s an employer’s job market wrote: “We’ve finally gotten back to being normal and are picky on new hires.” At another company, a manager described what employees were told: “It isn’t giving raises and said we should be grateful to have jobs.”

“In an employer’s job market, it’s best to be very clear about what you want and don’t want,” says Toothacre. “It’s easier to get a job when you have a job. Keep your connections warm and communicate your goals for your next position to people who might have connections or influence.”

Methodology: ResumeTemplates.com commissioned this survey, which was conducted in October 2026 using the Pollfish platform. A total of 1,430 U.S. business leaders were surveyed, all managers at companies with 101 or more employees. Of those business leaders, 1,000 met the demographic and screening criteria and completed the survey. The 19 respondents who did not know their company’s plans for raises are not counted in the results. Pollfish gathers responses through Random Device Engagement with quality controls, including an attention check. Results are based on self-reported responses. The gas and ground beef price changes, from September 2025 to September 2026, come from the Consumer Price Index.