Macy's to lift minimum wage to $15 per hour as labor market tightens
Macy's also said it would spend $35 million on a debt-free education benefit program for U.S. workers
National Retail Federation expects holiday sales to rise at record rate
Retail analyst Hitha Herzog and KB advisor Kristin Bentz joins ‘Making Money’ to discuss inflation woes ahead of the holiday season.
Macy's Inc. will raise the minimum wage of its more than 100,000 U.S. employees to $15 per hour by May, the department store chain said on Monday, as retailers fight to hire and retain workers in an increasingly competitive labor market.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| M | MACY'S INC. | 15.07 | +0.51 | +3.50% |
FILE - In this July 14, 2021 file photo, pedestrians pass the Macy's store in the Downtown Crossing shopping area, in Boston. (AP Photo/Charles Krupa, File) (AP Photo/Charles Krupa, File)
HOLIDAY SHOPPERS WILLING TO TAKE ON MORE DEBT THIS YEAR
A nationwide labor shortage driven by the pandemic has spurred retailers to raise wages and provide more benefits this year, with many worried that they will not have enough workers in stores and warehouses during the holiday shopping season.
In September, Amazon.com Inc. said it had increased its average starting wage in the United States to more than $18 an hour, while Walmart Inc. has also touted raises in average hourly wages this year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 198.38 | -4.50 | -2.22% |
| WMT | WALMART INC. | 88.39 | +1.21 | +1.39% |
Shoppers enter a Macy's store in Miami, Florida, U.S., on Saturday, Oct. 23, 2021. Consumers are facing dire warnings to get their holiday shopping done early this year, especially if theyre planning to do it online. Bottlenecks in the global supply (Eva Marie Uzcategui/Bloomberg via Getty Images / Getty Images)
Macy's also said it would invest to increase compensation and benefits for employees across the company, and spend $35 million on a debt-free education benefit program for U.S. workers over the next four years.
NEW YORK, NY - JULY 13: Customers visit a Macy's store on July 13, 2021 in New York City. (Photo by Wang Fan/China News Service via Getty Images) ( Wang Fan/China News Service via Getty Images)
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Once the increases take effect, Macy's average base pay will be above $17 an hour, the company said.