Amazon said Wednesday it’s raising its average starting pay for frontline workers from $18 to $19 a hour, a boost that could help it attract more employees in a tight labor market as the holiday season approaches.
Amazon said that beginning in October, warehouse and transportation workers would earn between $16 and $26 an hour, depending on their position and location in the U.S. The minimum wage at the Seattle-based e-commerce company, which employed roughly 1.5 million frontline workers as of the end of June, will remain $15 an hour.
The pay raise follows an announcement from Amazon that it will hold a Prime-Day like holiday shopping event in October, the first time it is having a major sales drive twice in a year, following its Prime Day deals event in July. Target and Walmart also said last week they will offer holiday deals or gift returns in October to accommodate cash-strapped consumers expected to shop earlier and spread out their spending for the holiday season.