Sep 2, 2021 - Economy & Business

Walmart to raise hourly pay for 565,000 employees

People wearing protective masks walk from a Walmart store on May 18, 2021 in Hallandale Beach, Florida.

Photo: Joe Raedle/Getty Images

Walmart plans to raise hourly wages for about 565,000 workers in departments such as food and general merchandise starting Sept. 25, the New York Times reports.

Why it matters: Walmart, who employs 1.6 million people in the U.S., will raise the average wage to $16.40, but its minimum wage of $11 an hour falls behind other large retailers such as Amazon and Target.

The big picture: The pay raise comes as employers in the retail, food service and hospitality industry experienced a labor shortage during the pandemic.

  • This year “has been another trying year, with challenges that few could have predicted,” Walmart’s head of U.S. operations, John Furner, said to employees on Thursday, per the NYT.
  • In February, Walmart raised wages for approximately 425,000 employees to somewhere between $13 to $19.
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