ALL NEWS

Target seeks to entice certain workers with pay of up to $24 an hour

Mar 1, 2022, 10:15 AM | Updated: Jul 14, 2022, 12:38 pm

FILE - A hiring sign is in front of a Target store in Manchester, Conn., Nov. 39, 2021. (AP Photo/T...

FILE - A hiring sign is in front of a Target store in Manchester, Conn., Nov. 39, 2021. (AP Photo/Ted Shaffrey)

(AP Photo/Ted Shaffrey)

NEW YORK (AP) — Workers at Target stores and distribution centers in places like New York, where competition for finding and hiring staff is the fiercest, could see starting wages as high as $24 an hour this year.

The Minneapolis-based discount retailer said Monday that it will adopt minimum wages that range from $15 to $24 an hour, with the highest pay going to hires in the most competitive markets. It currently pays a universal starting wage of $15 an hour.

The new starting wage range 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

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

Target set a new marker for the retail industry back in 2017 when it announced it would increase hourly wages to $15 by 2020. But U.S. labor-market dynamics have changed during the pandemic, with many employers facing severe worker shortages. And many of Target’s rivals are now paying a minimum of $15 per hour or more.

Target, which has roughly 1,900 stores and 350,000 employees in the U.S., noted that the turnover rate among its employees is now actually lower than before the pandemic. The retailer also said that it was able to exceed its goal of hiring 100,000 seasonal workers at its stores and 30,000 in its supply chain network across the country throughout the 2021 holiday season. But Target realized it needs to have an even more localized approach to wages. It said it is still doing its analysis and declined to name the areas that will be getting the highest starting wage.

When Target first announced in 2017 it would pay $15 an hour by 2020, it was one of the first major retailers to do so. But during the pandemic, a number of rivals like Best Buy followed suit, with some surpassing Target. Costco raised its minimum hourly wages for workers from $16 to $17 last fall. Amazon’s starting wage is $15 per hour, and the e-commerce giant’s nationwide average starting wage for jobs in transportation and fulfillment is $18 an hour.

Walmart remains a laggard: Last fall, it boosted its minimum wage to $12, from the $11 hourly base it established in 2018. Walmart also raised the hourly wages for more than 565,000 store workers by at least a dollar.

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% said it was difficult to find distribution-center workers.

That demand for workers has steadily pushed up wages, particularly for lower-income workers. According to the Federal Reserve Bank of Atlanta, pay among the poorest one-quarter of workers jumped 5.8% in January, compared with a year ago. That is double the gains for the highest-paid one-quarter.

In January, the average pay for retail workers excluding managers jumped 7.1% 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% from the previous year. In January 2017, it rose just 1.7% from the previous year.

But inflation has eaten away at most of those increases, with consumer prices rising 7.5% in the past year, the biggest increase in four decades. Yet that spike in inflation followed a year of muted price gains. Over the past two years, according to research by the Dallas Fed, pay increases have been strong enough to offset inflation, leaving workers, on average, with slightly higher inflation-adjusted pay.
___
AP Economics Writer Chris Rugaber in Washington contributed to this report.
___
Follow Anne D’Innocenzio: http://twitter.com/ADInnocenzio

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

All News

Visitors stand at the closed gates leading to the Eiffel Tower, Tuesday, Feb. 20, 2024 in Paris....

OLEG CETINIC Associated Press

Eiffel Tower operator warns the landmark is closed as strike turns visitors away for a second day

A strike at the Eiffel Tower over poor financial management turned away visitors on Tuesday for the second consecutive day.

2 hours ago

House fire in St. George. Initial investigations suggest it was accidental....

Derrick Jones

Family displaced after a fire in their St. George home

Emergency fire crews responded to a St. George fire after a passerby saw smoke from the garage of a home. 

3 hours ago

the front of a homeless shelter, budget plan utah...

Eric Cabrera

Salt Lake business leaders show support for governor’s budget plan to help homeless people in Utah

Leaders who approve of the budget plan said they had seen a huge difference in downtown Salt Lake over the past six months.

4 hours ago

UTA Frontrunner commuter rail. UTA Plans to address delays by updating cars and adding a new line t...

Curt Gresseth

UTA boss talks about train delays, says improvements coming

Despite frustrating delays, UTA has a 90 percent "on-time" record, says the executive officer.

5 hours ago

nikki haley shown, she will be in utah next week...

Bridger Beal-Cvetko, KSL.com

Nikki Haley to visit Utah next week ahead of Super Tuesday presidential caucus votes

Nikki Haley plans to hold a rally at the Noorda Center for the Performing Arts on Utah Valley University's campus in Orem on the morning of Feb. 28.

7 hours ago

solar panel shown, solar power in utah is the major focus of a proposed law...

Heather Peterson

Bill focusing on solar power customers in Utah gets favorable recommendation in Senate committee

Right now, Rocky Mountain Power only credits solar power customers in Utah about 5 cents for the power they send back to the grid.

7 hours ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

Target seeks to entice certain workers with pay of up to $24 an hour