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Reply to "Federal employee pay raise 2022"
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[quote=Anonymous]As a Federal employee myself, I hear and feel you frustration. The thing to keep in mind here is that the annual raise is not connect to, nor supposed to be connected inflation, at least not directly. The annual raise is about keeping the federal government a competitive employer. So the annual raise is supposed to mirror the growth in wages across industry. No employer, including the American people, want to pay more for talent that the competitor does... However, given that the President usually announces intent for the raise early in the year, the raise is usually a reflection of the increase in wages from the prior year. So while wages in 2021 are expected to rise around 3.5%, the 2.7% should be a reflection of what wages did in 2020. So maybe next year's raise will be in line with 2021 wage growth... Not trying to justify the raise, just explain the logic. It about competition for talent, not our buying power.[/quote]
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