Walmart Raises Minimum Wage to $14 an Hour in Bid to Retain Workers in Tight Labor Market

Walmart, the largest private employer in the United States, announced Tuesday that it will be raising its minimum wage from $12 to $14 an hour in an effort to retain store and warehouse workers in a tight labor market. The competition for low-wage retail workers has been fierce, even as companies scale back on hiring due to the labor shortage.

Walmart President and CEO John Furner told employees in a memo Tuesday that the pay raises will be reflected in their March 2 paychecks and will come through a combination of targeted and regular annual pay increases. The pay raises will affect 3,000 stores, increasing the average pay to $17.50 an hour from $17.

Walmart has been a target of criticism for its wages and benefits for decades. The company has raised wages and added benefits several times in recent years in an effort to retain workers. In many areas of the country, particularly southern states that have not adopted higher wage laws, Walmart’s starting wage often serves as the local minimum wage.

The pay raise is the latest move by Walmart to attract and retain workers in a tight labor market. The company has also added benefits such as paid parental leave, adoption assistance, and tuition assistance for workers. Walmart is also offering bonuses to workers who refer new hires.

Walmart’s move to raise wages is part of a larger trend of companies offering higher wages and benefits to attract and retain workers. With the competition for low-wage workers remaining fierce, it is likely that other companies will follow suit in the coming months.