On Thursday, retail giant Amazon (NASDAQ: AMZN) announced a new hiring initiative to add 75,000 employees as the company encounters tight labor market conditions. The company also guaranteed a $100 bonus for proof of vaccination and an additional $1000 sign-up bonus in some locations.
The job offer comes with an average starting salary of $17, reflecting a wage increase as response to low labor demand and possibly accounting for increasing inflationary pressures. The retail giant wasn’t alone in hiking wages; Chipotle (NYSE: CME) and McDonald’s (NYSE: MCD) have also announced wage increases as millions of workers have opted to stay on the sidelines.
These recent measures bolster the argument that the weak jobs numbers we reported on last Friday were primarily shaped by a lack of labor demand due to expanded jobless benefits, stimulus, and uncertain market conditions.
Moreover, the hiring offensive can be seen as another step in Amazon’s aggressive recruitment strategy throughout the pandemic. The company created 500,000 new jobs in 2020, responding to surging demand in e-commerce and is charging ahead at full-speed.