Entry Level Wages Rise Amid Labor Shortages
Amazon and McDonald’s Boost Hourly Pay
Amazon (AMZN) and McDonald’s (MCD) are among the major companies gearing up to hire thousands of entry-level workers as the economy reopens. Businesses are facing labor shortages and in response they are raising salaries, offering bonuses, and adding other perks to attract hourly workers.
According to the Labor Department, in April, the average hourly wage for private-sector employees increased $0.21 to $30.17. This is notable given that strong hiring trends in the restaurant and hospitality industries typically lower average earnings.
Companies in Hiring Mode
Amazon is in the process of hiring 75,000 employees and is paying $1,000 sign-on bonuses in some areas of the country. The ecommerce giant has been hiring throughout the pandemic to meet unprecedented demand. The average hourly wage for its open roles is $17 per hour, which is up from $15. Meanwhile, McDonald’s is hiring 10,000 workers at its company-owned stores. The restaurant chain plans to increase hourly pay by 10% over the upcoming months.
Other fast-food chains planning to hire tens of thousands of employees include Chipotle Mexican Grill (CMG), Applebee’s (DIN), and KFC (YUM). Chipotle is increasing the average hourly wage to $15 at all its restaurants.
Consumers Could See Restaurant Price Increases
The National Owners Association, a trade group which represents franchisees in the US, is encouraging its members to raise prices for consumers, arguing that sales are booming as consumers venture out again. Chipotle is one of the restaurants to take the advice to heart, recently raising prices on delivery orders.
Restaurants have experienced a volatile and challenging market during the pandemic. As consumers return to pre-pandemic habits, restaurants are rushing to meet their needs with larger labor forces.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21051702
All your finances.
All in one app.
App Store rating
