Costco raised the minimum wage to $17 an hour

Costco (cost) It told employees last week that it will increase the minimum wage from $16 an hour to $17 starting Monday. Costco has about 180,000 American employees, 90% of whom work every hour. Costco’s new starting pay puts the chain – which has the lowest turnover in the retail industry – $2 an hour above Amazon (AMZN)And targeting (TGT) and minimum wage for other major retailers, $5 an hour Walmart (WMT).
Costco’s latest salary bump comes as many retailers, restaurants and other employers in the service sector are raising salaries, offering signing bonuses and improving their benefit packages in response. Struggling to hire workers.
Costco raised the minimum wage to $14 in 2018 and $15 in 2019. In February, the Issaquah, Washington company raised the minimum wage to $16 an hour. Business Insider First mentioned Its latest increase.

“These increases are part of Costco’s ongoing efforts to ensure our hourly wages remain highly competitive in the retail industry,” Costco CEO Craig Jeline said in a note to employees.

There is pressure on companies to raise wages as they compete for employment. Average hourly wages for retail workers rose 3.8% in September compared to the same time last year, according to a recent report. data from the Ministry of Labour.
Amazon (AMZN)And targeting (TGT)And best buy (BBY) Others have raised their starting wages to $15 an hour in recent years. Amazon said in April it was increasing hourly wages by between $0.50 and $3 for 500,000 employees.
Walmart (WMT) It raised the minimum wage from $11 to $12 last month, while CVS (CVS) And Walgreens (WBA) They said in August that they would raise their starting salary to $15 an hour.

September wages across the private sector grew 4.6% over the previous year.

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