- Costco increases initial wages from $16 to $17.
- Costco is known for being a good workplace where workers tend to stay for years.
- Many companies are complaining of a shortage of labor, while workers say they are not paying enough.
Costco just raised starting wages again, this time to $17, Costco confirmed to Insider in an email. The increase went into effect on October 25.
The department store last raised its minimum wage to $16 in February 2021, from $15 it has been since 2019. Costco CEO W. Craig Jelinek described the recent increase. “good job,“High wages reduce employee turnover.
“We’re certainly not perfect, but we try to take care of our people, because they play an important role in our success,” Jelinek said earlier this year. Costco is known for being one of the best retail companies to work for, and ranks among the companies with the happiest employees. Workers get paid time off, and many are eligible for health care. The average costco employee tenure was nine years as of February, and more than half of employees earned more than $25 an hour.
Suffering from a persistent labor shortage, high wages were one of the ways companies kept workers in business. Amazon and Target have both raised their minimum wage to $15 in recent years after pressure from workers and the Fight For $15 organization. Labor shortages have been described by experts and analysts as a misnomer, which means that there are not enough workers instead there are not enough good jobs, and many people are no longer willing to work at low wages in difficult and sometimes dangerous jobs.
Business owners across the industry say they are unable to find employees, and in some cases indicate an unwillingness to work, while workers say they can demand better wages and benefits in a tight labor market. Retail and restaurant workers have left the industry en masse to move away from low wages and difficult customers, and the growing number of jobs in the labor market is making the transition to new jobs easier.
Do you have a story you would like to share about a chain of stores or restaurants? Email this reporter at firstname.lastname@example.org.