Pay raises to take hit in new year

The new year probably won’t be the best time to ask for new raises, with economists and recent studies predicting widespread payroll cuts.

More than 7 million Americans will see the lowest pay increases in three decades, according to a December survey by Illinois-based Hewitt Associates. The average worker will receive on average a 3 percent increase in pay, down from 3.8 percent in a July survey. Salaried exempt employees will see an average increase of 2.5 percent.