Apple said on Wednesday that wages for corporate and Retail employees will be increased later this year. The move comes amid a record-tight labour market in the United States, as well as rising inflation and living costs for employees. Apple’s decision comes after Google, Amazon, and Microsoft made significant adjustments to their compensation schemes in an effort to retain and recruit talent.
In addition, Apple will increase the beginning salary for Retail staff in the United States to $22 per hour, up from $20. According to Apple, certain locations may have greater beginning salaries. Apple announced the raise in Retail salaries as the company faced Retail union efforts around the country demanding greater compensation. Employees at an Atlanta, Georgia shop will vote in June on whether or not to join the Communication Workers of America.
In reaction to market conditions, there are some signals that the hot labor market for technology employees may be cooling. Facebook, Snap, and Nvidia recently announced that they will limit recruiting to manage expenses. Apple is still a cash-rich behemoth, with revenues expected to rise 34% to over $297 billion in 2021, with a gross margin of 43%.