Target boosting workers' minimum wage to $11 an hour
Sep 26 2017
Target has previously raised its minimum wage to $10 last May, and before that to $9 an hour in April 2015.
With a tightening labor market and a holiday hiring spree underway, Target Corp. said this morning that it will raise the minimum wage of all hourly workers to $11 starting in October.
The company announced Monday that it would establish an $11 minimum wage next month, with a goal of reaching a $15 minimum wage by 2020.
Target said that the wage increase beginning in October will also apply to the 100,000 temporary employees the retailer plans to bring aboard ahead of the holiday season, a 43% increase from previous year. "We care about and value the more than 323,000 individuals who come together every day with an absolute commitment to serving our guest", CEO Brian Cornell said in a statement.
Target's last major wage increase was in 2016, when it moved to a $10 minimum hourly wage in response to a similar move by rival Wal-Mart Stores Inc. The company is also spending $7 billion to remodel stores and open new locations, including on college campuses.
The federal minimum wage is $7.25.
Target has been steadily raising its minimum wage for the past few years. "We thought the timing was right as we move into the holiday season". In the Charlotte area, local employers including Bank of America and Wells Fargo have similarly raised their minimum wages.
"They've got a broad, long-term problem because the labor market is tight and it's going to get tighter", Mark Zandi, chief economist at Moody's Analytics toldThe Wall Street Journal.
A minimum hourly wage of $11 is higher than the minimum wage in 48 states and matches the minimum wage in MA and Washington. Democratic leadership introduced a bill in July to take the $15 minimum wage national, but the legislation failed to attract the requisite support to advance.