Steve Proehl | Corbis unpublished | Getty Images
Apple on Wednesday said it would raise wages for corporate and retail workers later this year. The move comes during a historically tight U.S. job market and as employees struggle with rising inflation and a higher cost of living.
Apple’s move comes after Google, Amazon and Microsoft made changes to their compensation structures in recent weeks to pay workers more to retain and attract talent.
“By supporting and retaining the best team members in the world, we are able to deliver the best and 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 raise the starting wage for its US retail workers from $20 to $22 an hour. Stores in certain regions may have higher starting salaries, Apple said.
The retail wage hike was announced as Apple faces unions across the country demanding higher wages. Employees at a store in Atlanta, Georgia will vote in June to organize with the Communication Workers of America.
Inflation hit 8.3% in April, the highest rate in more than 40 years, while unemployment remains low at 3.6%. This combination of factors has led many workers, particularly in high-demand areas such as technology, to look to other companies for better pay or more flexible terms.
There are some signs that the hot tech job market may be slowing in response to market conditions. Facebook, Snap and Nvidia recently announced that they will slow down recruitment to control costs in response to market conditions.
Apple remains a giant with a strong cash position, with revenue growing 34% in 2021 to over $297 billion at a gross margin of 43%.