Image Source: REUTERS
Apple announced this week that it would be raising the wages of its retail and corporate staff. The move came even amidst inflation and tight labor conditions in the United States.
Inflation has been a major problem for many in recent months. The COVID-19 pandemic and, recently, the conflict between Russia and Ukraine have caused prices to increase significantly; however, Apple’s move to raise their employees’ wages will hopefully alleviate most of these worries.
Other companies are following suit and increasing the salaries of their employees, including Microsoft, Amazon, and Google. According to the companies, it is essential to raise pay so they can keep their bright employees and attract great ones.
In a statement, Apple said, “This year, as part of our annual performance review process, we’re increasing our overall compensation budget.”
“Supporting and retaining the best team members in the world enables us to deliver the best, most innovative products and services for our customers,” Apple said further.
The starting wage for employees in the retail department at Apple stores will also increase the hourly rate from $20 to $22. Apple said that these are subject to changes as there are variations among individual locations.
In the past months, Apple has been facing labor union drives in their retail stores, with workers shouting for higher wages. The company answered this demand to prevent further conflict as some workers hinted at plans to work with the Communication Workers of America this June.
With inflation at 8.3%, the US is experiencing its fastest inflation rate in more than 40 years. Meanwhile, the unemployment rate sits below 4%. These economic conditions have driven many workers from highly exhaustive fields to demand better pay.
Still, Apple is dominating sales with a 34% growth in 2021, recording over $297 billion in revenue.
However, the strong market conditions have caused hiring to slow down. Company giants like Snap, Nvidia and Facebook say that they will lessen their initiatives in order to lessen costs.
Opinions expressed by US Insider contributors are their own.
