Get All Access for $5/mo

Costco Raises Wages to Remain 'Extremely Competitive' This is the second time this year that the retailer will implement such an increase.

By Emily Rella

Opinions expressed by Entrepreneur contributors are their own.

Bloomberg | Getty Images

Costco raised its starting wage a second time in a year earlier this week in a move designed to draw and retain employees amid the ongoing labor shortage.

The company told its employees last week that the minimum wage would increase from $16 to $17 starting Monday. Of about 180,000 employees at the company's U.S. locations, 90% of them work hourly, according to CNN Business, which also shared part of the memo announcing the increase.

"These increases are part of Costco's continuing efforts to ensure our hourly wages remain extremely competitive in the retail industry," CEO Craig Jelinek wrote.

Related: Unemployment Claims Fall to Pandemic Low Amid Tight Labor Market

The bump puts Costco employees' starting wages significantly above those of Amazon, Target and Walmart, which are some of the wholesaler's primary competitors in the retail market.

In 2018, the retailer raised its minimum wage to $14. In 2019, it bumped that up to $15 before moving to $16 in February of this year.

In September of this year, wages in the private sector grew 4.6% from the same time in the previous year.

Emily Rella

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Franchise 500 Annual Ranking

50 Franchise CMOs Who Are Changing the Game

Get to know the industry's most influential marketing power players.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Living

70% of Small Business Owners Experience Monthly Burnout. Follow These 3 Rules to Avoid the Same Fate.

Here are three guidelines to help entrepreneurs achieve balance, growth and success in both their professional and personal endeavors.

Side Hustle

At Age 15, He Used Facebook Marketplace to Start a Side Hustle — Then It Became Something Much Bigger: 'Raised Over $1.6 Million'

Dylan Zajac, now a 21-year-old senior at Babson College, wanted to bridge the digital divide.