Year-End Bonuses Shrink at US Small Firms Amid Uncertain Outlook

It’s not just Wall Street bankers who are seeing their bonus slump.

Year-end bonuses at US small and medium-size businesses fell 9.7% from 2021, declining to an average of $526 from $582, according to payroll-services company Gusto.

With job cuts mounting at technology and financial firms, incentives to keep workers are shrinking.

“Bonuses fell the most in sub-sectors such as finance, insurance, and tech, where the labor market is the weakest,” said Luke Pardue, economist at Gusto.

In spite of the declines, employees in the finance industry still got the biggest bonuses — an average of $2,148 each ...