Walmart Raises Minimum Wages As Worker Shortages Crunch Labor Market

Walmart It was announced Tuesday that the grocery store and retail outlets will merge. corporation The average will increase wages As the labor market continues to experience a shortage of workers, many associates feel this.

John Furner, Walmart U.S. CEO, spoke out in a memo The company intends to increase rates in certain stores so that they are more attractive than their competitors. Walmart employees in the United States will receive an average pay of $17.50 per hour.

“Starting next month, we’ll begin investing in higher wages for associates,” Furner wrote. “This includes a mixture of associates’ regular annual increases and targeted investments in starting rates for thousands of stores, to ensure we have attractive pay in the markets we operate.”

Walmart is one of the largest private sector employers in the United States; the company currently has 1.7 million domestic associates, according to the retailer’s website. The company also announced an expansion of education programs for employees, which included an increase in college degrees that associates can receive reimbursement for.

Amazon, another prominent private sector employer, announced nationwide wage increases towards end of last year. According to a report, the average hourly salary for employees in customer fulfillment or transportation will rise to $19.00 per annum. However, employees can make between $16.00/hour and $26.00/hour depending on their location in the United States. press release From the e-commerce company.

As both private and public sector employers struggle for employees, wage increases happen. According to a report by a, the economy has approximately 10.5million job openings and 5.7million unemployed. report The Bureau of Labor Statistics shows that a tight labor market has led to higher inflationary pressures, as companies increase their compensation.

Despite the continued decline in unemployment, labor force participation has not recovered from the lockdown-induced recession. According to the metric, the metric tracks the percentage of the working age population that is currently employed or looking for a job. It fell from 63% early 2020 to 62% by late 2022. data From the Bureau of Labor Statistics. Federal Reserve Chair Jerome Powell remarked The workforce “participation gap” This is largely due to “excess retirements” This was not the end. “what would have been expected from population aging alone,” Even though they are younger, many of them return to work.

Walmart also offered incentives for store associates and supply chain staff to become certified truck drivers. earn They could make as much as $110,000 their first year in their new job. Supply chain bottlenecks are caused by the constrained labor market. The nation has 80,000 truck drivers short, according to data According to the American Trucking Association (ATA), the number could rise to 160,000 drivers by 2030.

As the labor market continues to be impacted by persistent shortages, other companies have announced moves to automate operations. McDonald’s recently created Texas’s first test restaurant, in which customers can use kiosks to place orders and a mobile application to receive them from a conveyor belt instead of interacting with customer service staff. tested A robotic chip maker at a California location.