(Bloomberg) -- Amazon.com Inc (NASDAQ: AMZN ). boosted pay as it looks to hire 125,000 warehouse and shipping workers amid a tight U.S. labor market.
The e-commerce giant said starting wages for open jobs in logistics average $18 an hour, or 20% more than the $15-an-hour base pay the company set back in 2018, with signing bonuses of as much as $3,000 in some locations. Earlier this month, Amazon pledged to hire 40,000 people to fill corporate and tech roles.
A nationwide labor shortage has U.S. companies scrambling to find workers as the economy recovers from the pandemic. They’re boosting pay, offering signing bonuses and offering education perks.
In another effort to sweeten the pot and keep up with rivals, Amazon last week said it would pay college tuition for some frontline employees. Walmart (NYSE: WMT ) Inc. in July said it would pay the costs of tuition and books for its hourly staffers. Target Corp. (NYSE: TGT ) last month said it would offer free undergraduate degrees to more than 340,000 employees at its U.S. stores.
Amazon typically ramps up hiring in the fall to ensure it has enough workers for the crucial holiday shopping season, and often kicks that off with a string of announcements about its hiring goals.
The company has been on a recruiting tear of late, adding more than 400,000 workers last year as the pandemic sent locked-down shoppers rushing online. Last year, Amazon added about one logistics facility a day, and is likely on pace to exceed that total in 2021. The company on Tuesday said it had opened more than 250 new fulfillment centers, sortation centers, delivery stations and air-cargo hubs in the U.S., and will open 100 additional buildings in September.
The company employed 950,000 people in the U.S. at the end of June, out of 1.3 million worldwide. Most of those people work in the company’s massive logistics division, primarily in the warehouses that store and pack items. Amazon shares were up slightly in New York on Tuesday morning.
Amid the hiring spree, Amazon has been roiled by labor unrest, including a failed attempt to unionize a facility in Alabama. Jeff Bezos earlier this year pledged to focus more on the welfare of Amazon workers, a sentiment echoed by his successor, Chief Executive Officer Andy Jassy.
©2021 Bloomberg L.P.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.