According to a Reuters report, Amazon.com Inc has raised its average starting wage in the United States to more than $18 an hour and aims to add another 125,000 warehouse and transportation workers.
Since May, the world’s largest online retailer has increased wages from roughly $17. According to Dave Bozeman, vice president of Amazon Delivery Services, the business is offering $3,000 signing bonuses in some regions, which is triple what the company gave four months ago.
The larger payout demonstrates how big businesses are seeking to attract workers in an increasingly tight labor market in the United States. Fewer Americans are filing for unemployment benefits at a time when job opportunities are at an all-time high in the recovering economy.
Amazon’s newest pay raise, according to Bozeman, is due to increased competition. Amazon did not provide specific percentages, but a $1 raise on a $17-per-hour wage would equate to a 6% increase.
In 2018, Amazon, the second-largest private employer in the United States, established a $15-per-hour minimum wage. Walmart Inc recently boasted $16.40 average hourly wages, while Walgreens Boots Alliance Inc said that its minimum wage would be raised to $15 in October.