Home Depot will invest $1 billion in wage increases for its hourly employees in the U.S. and Canada.
The company announced that every hourly worker would receive a raise, and starting pay will be a minimum of $15 per hour in all markets, beginning this month, according to NBC News.
Home Depot is the latest company to increase pay while unemployment is at its lowest level in 53 years, NBC DFW reported.
Walmart recently announced an increase in its hourly wage to an average of $17.50, according to Forbes.
In 2022, Target said it would raise its minimum wage up to $24 per hour, depending on the market, as part of a $300 million initiative to increase pay and benefits, according to NPR.
Home Depot’s decision to increase pay could stave off unionization, according to NBC 5 DFW. Workers at a Philadelphia Home Depot store recently voted against unionizing, WHYY reported.
“We’re happy that the associates at this store voted to continue working directly with the company,” said Home Depot spokesperson Margaret Smith, after the vote, per WHYY.
“That connection is important to our culture, and we will continue listening to our associates and making The Home Depot a great place to work and grow.”
Home Depot has around 2,300 stores in North America and roughly 475,000 employees, making it one of the United States’ largest private employers, according to CNBC.
The company reported a record year in 2022 on Tuesday, with over $40 billion in global sales growth, according to a press release.
Home Depot still missed on fourth-quarter sales estimates, sending shares down nearly 7% on Tuesday, as previously reported by The Dallas Express.
“The most important investment we can make is in our people, which is why we are announcing that we are increasing annualized compensation by approximately $1 billion for our frontline hourly associates,” Home Depot said on the fourth quarter earnings call on Tuesday.
“We believe this investment will position us favorably in the market, allowing us not only to attract the most qualified talent but also retain the exceptional associate base that is already in place.”