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Apple said on Wednesday that it will raise pay for corporate and retail workers later this year. The move comes during a historically tight labor market in the U.S. and as employees contend with increased inflation and cost of living.
"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 representative said in a statement. "This year as part of our annual performance review process, we're increasing our overall compensation budget."
Apple will also raise the starting wage for its retail employees in the U.S. to $22 an hour, up from $20. Stores in certain regions may have higher starting pay, Apple said.
The increase in retail salaries was announced as Apple 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.
Inflation hit 8.3% in April, the fastest rate in more than 40 years, while unemployment remains low at 3.6%. This combination of factors has pushed many workers, especially in high-demand fields like technology, to look for better pay or more flexible conditions at other companies.
There are some signs that the hot labor market for technology workers may be slowing in response to market conditions. Facebook, Snap and Nvidia have recently said they will slow hiring to control costs in response to market conditions.
Apple remains a giant in a strong cash position, with sales growing 34% in 2021 to over $297 billion with a 43% gross margin.