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Business

Apple says it will increase the salaries of corporate and retail employees in a tight labor market




Steve Proehl | Corbis Unreleased | Getty pictures

Apple said on Wednesday that it will increase the wages of business and retail workers later this year. The move comes during a historically tight labor market in the US and as employees struggle with increased inflation and cost of living.

Apple̵[ads1]7;s move comes after Google, Amazon and Microsoft made changes to their compensation structures in recent weeks to pay workers more in an effort to 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 to our customers,” said an Apple representative in a statement. “This year, as part of our annual performance review process, we are increasing our overall compensation budget.”

Apple will also raise the starting salary for its retail employees in the US to $ 22 per hour, up from $ 20. Stores in certain regions may have higher starting salaries, Apple said.

The increase in retail salaries was announced as Apple faces unions across the country asking for higher salaries. Employees of a store in Atlanta, Georgia, will vote in June on organizing with Communication Workers of America.

Inflation reached 8.3% in April, the fastest in more than 40 years, while unemployment remains low at 3.6%. This combination of factors has pressured many workers, especially in high-demand fields such as technology, to look for better pay or more flexible conditions at other companies.

There are some signs that the hot labor market for technology workers may decline in response to market conditions. Facebook, Snap and Nvidia have recently said that they will lower employment to control costs in response to market conditions.

Apple is still a giant in a strong cash position, with revenue increasing by 34% in 2021 to over $ 297 billion with a gross margin of 43%.



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