Saturday, October 1, 2022

Target Raising Hourly Wages From $15 to $24 for Some Workers

Target
In this photo illustration, Target Corporation logo seen on a smartphone and a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)

*Target announced Monday that the starting wage for some workers at stores and distributions centers will increase from $15 to $24 an hour.

The increase will apply to hourly workers at its discount stores, supply chain facilities, and headquarters in the most competitive markets, such as New York. 

The Minneapolis-based retailer said currently pays a universal starting wage of $15 an hour.

The wage increase “is part of a company plan to spend an additional $300 million on its labor force this year that will also include broader, faster access to health care coverage for its hourly workers,” per NBC News.

“The market has changed,” said Target CEO Brian Cornell in an interview. ”We want to continue to have an industry-leading position.”

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Target employees to get wage increase
Target employees

Target has roughly 1,900 stores and 350,000 employees in the U.S. The wage increase comes amid “an ongoing worker shortage in the retail industry, partly triggered by the pandemic,” per CNN.

Here’s more from NBC News: 

Many retailers say they’re struggling to find workers. According to a recent survey of more than 100 major retailers with annual revenues between $500 million to more than $20 billion, 96% said they’re having trouble finding store employees. The survey conducted by global consulting firm Korn Ferry in January also found that 88 percent said it was difficult to find distribution-center workers.

In January, average pay for retail workers, excluding managers, jumped 7.1 percent from a year earlier to $19.24 an hour. That’s faster than pre-pandemic gains. In January 2020, pay for retail workers rose 4.2 percent from the previous year. In January 2017, it rose just 1.7 percent from the previous year.

“Alongside the health risks, uncertainty and stress of working during a pandemic, many service-sector workers continue to contend with chronically unpredictable and unstable work schedules,” according to a recent report from the Shift Project, a joint venture by Harvard University and the University of California, San Francisco.

According to reports, in 2018, Amazon raised its starting wage to $15. Best Buy bumped up its minimum wage to $15 in 2020. Last fall, Walmart, the largest US retailer, boosted its minimum wage from $11 to $12.

Ny MaGee
Ny MaGee is an entertainment reporter with over 15 years of experience working in the film industry in areas including production and post-production, marketing, distribution, and acquisitions. She has worked for legendary film producer Roger Corman, Quentin Tarantino's production team at Miramax, the late Larry Flynt, MTV/ VH1, Hallmark Channel, Paramount, Jim Henson Co., Parade Magazine, and various LA-based companies representing above-the-line talent.

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