Dude, where's my pay? | U.S. year-end bonuses fall by 21% in 2023

Year-end bonuses awarded to U.S. employees fell by 21% last year from an average of $2,730 in December 2022 to $2,145 in December 2023, according to research from payroll software platform Gusto.

The drop is a 33% hit from the average in December 2021 which came in at $3,213 and a 41% drop from the $3,583 average in December 2019.

The research draws on data from over 300,000 Gusto clients. According to the report, a stabilizing labor market, a dramatic drop in expectations for employee growth across 2022 and 2023, and inflationary pressures are to blame for the hit to employee pay packets.

Whilst figures were down across all industries, there is variation from sector to sector. The technology sector is one industry with a notably small drop, with average bonuses falling by 3.8% from 2023 to 2022.