As companies are facing a tight labor market and a surge in unionization efforts, Apple decided to raise the starting pay for its U.S. based employees.
“Supporting and retaining the best team members in the world enables us to deliver the best, most innovative, products and services for our customers,” an Apple spokesperson said in a statement. “This year as part of our annual performance review process, we’re increasing our overall compensation budget.”
The starting pay for the company’s U.S. staff will rise to $22 per hour, a 45% jump from 2018 levels, Apple said in a statement to Reuters.
The announcement comes as the Cupertino, California based firm faces retail union drives across the country asking for higher wages. Employees at a store in Atlanta, Georgia will vote in June whether to organize with the Communication Workers of America.
Skyrocketing inflation and low unemployment are pushing workers to look for better pay or more flexible conditions at other companies.
The iPhone manufacturer’s move comes after tech giants Google, Amazon and Microsoft also changed compensation policies to pay workers more in a bid to retain and attract talent.
Apple reported sales growing 34% in 2021 to over $297 billion with a 43% gross margin.