Steve Proehl | Corbis not released | Getty Images
Apple said Wednesday it will increase wages for corporate and retail workers later this year. The move comes amid a historically tight job market in the US and as workers struggle with rising inflation and the cost of living.
Apple’s move comes after Google, Amazon and Microsoft made changes to their compensation structures in recent weeks to pay employees more in an effort to retain and attract talent.
“By supporting and retaining the best team members in the world, we can deliver the best, most innovative products and services to our customers,” an Apple representative said in a statement. “This year, as part of our annual performance review process, we are increasing our total compensation budget.”
Apple will also increase starting wages for its US store associates to $22 per hour, from $20. Stores in certain regions may have higher starting wages, Apple said.
The increase in retail salaries was announced as Apple faces union action across the country demanding higher wages. Employees at a store in Atlanta, Georgia will vote with the Communication Workers of America in June to organize.
Inflation reached 8.3% in April, the highest rate in more than 40 years, while unemployment remains low at 3.6%. This combination of factors has prompted many workers, especially in high-demand areas such as technology, to seek better wages or more flexible terms from other companies.
There are some signs that the hot job market for tech workers is slowing in response to market conditions. Facebook, Snap and Nvidia recently said they will slow hiring to contain costs in response to market conditions.
Apple remains a cash-rich giant, with revenue growing from 34% in 2021 to over $297 billion with a gross margin of 43%.