BOSTON — Massachusetts employers are forecasting smaller wage increases in 2020 than their national counterparts, according to a new report.
The HR Practices Report, released Monday by Associated Industries of Massachusetts, also predicts a "consistent level of recruitment activity, and moderating health-insurance premium increases for 2020."
The report indicates companies are projecting 2.77 percent in salary increases for this year, compared to a national salary increase projection of 3.3 percent.
"Salary increase trends in Massachusetts have tended to lag national numbers in recent years and the gap has begun to widen," AIM said.
The report comes at a time when employees are in demand — the state jobless rate is resting at 2.9 percent and employers are coping with a shortage of skilled workers.
Survey data, however, suggests wage increases that might accompany a labor crunch are being suppressed by costs employers are facing in connection with the state's rising minimum wage and the new paid family and medical leave law, as well as employee health insurance costs.
The report also notes employee wages in Massachusetts are already much higher than the national average.
In addition, older workers are seeing slower wage growth and when they retire are being replaced by less expensive younger workers, and high-skill workers receive a significant portion of their compensation in bonuses, commissions and stock options.