Economy

Target to raise its minimum wage

Target to raise its minimum wage”

Also, more than 60% of Target's employees live within five miles of the store where they work.

Target announced plans to hike its minimum raise to $11 next month and will increase the minimum hourly wage to $15 by 2020.

But Target's commitment to $15 is the highest from a large retailer thus far. Target framed the choice as part of its long-term business strategy.

Zagros Madjd-Sadjadi, an economics professor at Winston-Salem State University, said that with Target raising its minimum wage, the company is attempting to increase its customer service experience at a time "when that is one of the strengths of the experience in a brick-and-motor store over online shopping". Driven by minimum wage increases at Wal-Mart, the biggest retailer and private sector employer in the United States, last raised its minimum wage in 2016 to $10 per hour. It also comes as the nation's unemployment rate tightens and job vacancies continue to climb, making it harder for businesses to hang on to trained staffers.

Just in time for holiday hiring, Target is giving its lowest-paid employees a raise.

The economic timing is right to ramp up perks, said Shierholz, who previously worked as the chief economist for the Obama administration's Labor Department.

"On average, we pay 30% more than traditional retail jobs", Amazon spokeswoman Ashley Robinson said. Labor advocates have called out the restaurant and retail industries in particular for their often low starting wages, as well as such practices as last-minute scheduling that they say disrupt the lives and incomes of workers.

At Walmart, hourly workers may jump to $10 an hour in as soon as 90 days upon successful completion of a training program, according to spokesman Kory Lundberg. The October increase will put wages 52 percent higher than the federal minimum wage of $7.25 an hour, which hasn't been raised since 2009.

Washington and MA mandated in January that workers must make at least $11 an hour.

On average, Target employs 160 people per store and offers career planning and development opportunities, with one in four store leaders having come from hourly positions within a Target store. The company also pledged by the end of 2020 to be at $15 an hour.

"If Target can pay $15/hour, companies like McDonald's can and should too", Suffridge said. "They should follow Target's lead instead of paying workers so little they have to rely on public assistance to get by".

Ensuring workers stick around, especially before the holiday rush - and especially in this labor market - could ultimately save the retailer money, he said.



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