Amazon to hire up to 125,000, increase pay in 'tight labor market'

Economics
Amazon1600
Amazon plans to expand its workforce and increase wages. | Photo by Christian Wiediger on Unsplash

Set to launch at least 100 logistics facilities in the coming days, Amazon Inc. has announced plans to raise average starting wages to $18 per hour.

In all, Reuters reports the world’s largest retailer plans to hire upwards of 125,000 warehouse and transportation workers across the country. In some cases, the company has also pledged to pay sign-on bonuses as big as $3,000 and hourly wages that could rise to as high as $22.50 an hour.

Company officials also noted that new hires will help launch its new one-day delivery for Amazon's Prime loyalty club members.

All across the country, retailers are scrambling to add staffers in a job market that remains tight since being turned upside down by the lingering impact of COVID-19.

"It's a tight labor market, and we've seen some of that as the entire industry is seeing," Vice President of Amazon Delivery Dave Bozeman told Reuters, partly attributing the pay upgrades to competition. "The 125,000 (warehouse workers) is really to help us keep up with our growth."