Apple says it will raise corporate and retail employees’ salaries in a tight labor market

Apple said on Wednesday it will raise wages for its corporate and retail workers later this year. The move comes during a historically tight job market in the United States, as employees grapple with rising inflation and the cost of living.

Apple’s move comes after Google, Amazon and Microsoft made changes to their compensation structures in recent weeks to pay more workers to workers in an effort to retain and attract talent.

“Supporting and retaining the best team members in the world allows us to provide 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 overall compensation budget.”

Apple will also raise the starting pay for retail employees in the United States to $22 an hour, from $20. Apple said stores in certain regions may have higher starting salaries.

The increase in retail pay has been announced as Apple faces the retail association’s nationwide push to demand higher wages. Employees at a convenience store in Atlanta, Georgia, will vote in June whether to team up with American communications workers.

Inflation reached 8.3% in April, the fastest rate in more than 40 years, while unemployment remains low at 3.6%. This combination of factors has prompted many workers, particularly in high-demand fields such as technology, to seek better wages or more flexible terms at other firms.

There is some indication that the hot labor market for tech workers may be slowing in response to market conditions. Facebook, Snap, and Nvidia recently said they would slow hiring to control costs in response to market conditions.

Apple remains a giant in a strong cash position, with sales growing 34% in 2021 to more than $297 billion by a 43% gross margin.