- The company said on Wednesday that Apple is increasing salaries for corporate and retail employees in response to market conditions.
- Apple will increase the starting salary for its retail employees in the US to $22 an hour.
Apple said on Wednesday that it will increase pay for corporate and retail employees later this year. The move comes during a historically tight labor market in the US and increased inflation as employees and the cost of living rise.
Apple’s move comes after Google, Amazon and Microsoft changed their compensation structures in recent weeks to pay workers more and retain and attract talent.
“Supporting and retaining the best team members in the world enables us to deliver the best, most innovative, products and services for our customers,” an Apple representative said in a statement. “As part of our annual performance review process this year, we are increasing our overall compensation budget.”
Apple will increase the starting wage for its retail employees in the US from $20 to $22 an hour. Apple said starting pay could be higher in stores in some regions.
The increase in retail wages was announced as Apple was facing a nationwide retail union drive demanding higher wages. Employees of an Atlanta, Georgia store will vote in June whether to organize with America’s communications staff.
Inflation hit 8.3% in April, the fastest rate in more than 40 years, while unemployment remains at a low of 3.6%. This combination of factors has led many workers, especially in high-demand fields such as technology, to seek better pay or more flexible positions at other companies.
There is some indication that the hot labor market for technology workers may be slowing down in response to market conditions. Facebook, Snap and Nvidia recently said they would slow hiring to control costs in response to market conditions.
Apple remains a giant in a strong cash position, with sales rising 34% to more than $297 billion in 2021, with a 43% gross margin.
Credit: www.cnbc.com /