Health Costs May Slow U.S. Wages and Hiring

U.S. companies expect an 11% rise in employee health costs in the next year, and as a result some may slow wage growth or hire fewer permanent workers, according to a survey.

The survey, released by consulting firm PricewaterhouseCoopers, found that in the last year healthcare costs rose 12%, slowing profit growth at half of large U.S. companies. Executives were surveyed at 109 companies with at least 1,000 workers and at 38 companies with fewer than 1,000 workers.

More than three-quarters of executives surveyed said they might ask workers next year to share more cost. About 1 in 4 said they might slow the rate of wage increases, and 1 in 5 said they might stall hiring of permanent workers.