Despite wage rises, US workers have far to go

Fast-food employees in Manhattan demonstrating for a wage of $20 an hour: a demand unthinkable before the Covid-19 pandemic has become unexceptional, as short-handed companies offer big wage increases without, however, doing much to narrow a yawning income gap.

The upward wage pressure has come from several sources, including an unusually tight labor market and child-care challenges linked to the pandemic, as well as chronically underpaid workers unwilling to return to pre-pandemic conditions. Employers have not only had to raise wages but in some cases have offered improved health care insurance and bonuses.

“The country’s major employers have understood that they need to bring wages up to scratch if they want to attract reliable workers who can help them navigate this period of major uncertainty,” said Gregory Daco, chief economist at Ernst & Young Parthenon.

Apple, after announcing it was raising its hourly minimum wage to $22, said in a statement, “Supporting and retaining the best team members in the world enables us to deliver the best, most innovative products and services for our customers.”

The tech giant said that in addition to sector-leading wages, it was providing “a robust range of benefits” for full- and part-time employees.