Target raises hourly wages for workers to compete with Amazon, Walmart, etc.

It is learned that according to foreign media reports, Target recently announced that it will increase the base salary of workers in labor shortage markets such as New York to US$15 to US$24 per hour.

The new starting salary is part of Target's reported $300 million plan to spend on the workforce in 2022. Target will also provide health care to employees who work fewer than 25 hours a week.

It is learned that at present, the minimum hourly wage for workers set by federal law is $7.25, but states are gradually raising the wage standard to $15 per hour. In particular, some private companies have even higher wages.

Target said in the announcement that the exact hourly wage for workers depends on the job and the local market and will be determined based on industry benchmarks, local wage data, etc. The new hourly wage will be for all part-time workers, whether they work in stores, supply chain facilities, or headquarters.

Target's move reflects the fierce competition among retailers for workers. Amazon, Walmart, McDonald's and others have made significant efforts to attract new employees and retain existing employees, including health benefits, education funding subsidies, promotion opportunities, paid vacations and higher pay.

Editor ✎ Nicole/

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