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rising wages to attract workers, “a good thing”, says Yellen

published on Wednesday, October 20, 2021 at 6:45 p.m.

Small American companies will undoubtedly have to increase wages to attract labor, in the face of competition from large groups, and this is “a good thing for workers,” Treasury Secretary Janet Yellen said on Wednesday.

“They may have to pay more, (…) but it’s a good thing for the workers,” said Finance Minister Joe Biden, when asked about the possibility for restaurants, for example, to offer higher salaries than those offered by giants like Amazon.

“In a way, it’s good to see wages increase and working conditions improve for people working in low-wage sectors of the economy. It’s something we’ve wanted to accomplish for a long time.” , she said, on MSNBC.

“Many workers in the service sector have suffered from chronically low wages, working conditions and insufficient benefits”, the secretary of the treasury said.

Ms. Yellen cited in particular the workers in the early childhood sector: “a good part of them really have to receive public aid because they have so few”.

The United States faces a labor shortage, with many workers leaving the workforce since the pandemic. The jobs most affected are those at the bottom of the salary scale, in the catering, childcare, transport sectors, among others.

“The job market is, in many ways, very tight, even if some people (…) find it difficult to return to work,” said Janet Yellen.

Between February 2020, that is to say before the crisis, and September 2021, in fact, the civilian workforce lost 3 million people, according to data from the Department of Labor.

Faced with recruitment difficulties, many large companies have raised their lowest wages, and offer bonuses and benefits.

CVS pharmacies, Target stores, Chipotle restaurants, among others, crossed the $ 15 an hour mark, which Joe Biden wanted to impose when he arrived at the White House, but which he had had to give up in the face of the fierce Senate opposition.

The minimum federal salary is legally $ 7.25.

Within Amazon, it is now an average of $ 18 for new employees, and goes up to $ 21, with hiring bonuses of up to $ 3,000.

The Walmart store chain, the country’s largest private employer, now offers $ 12 to $ 17 an hour for hire, with an average hourly wage of $ 16.40.

The average hourly wage, all categories of workers combined, rose from $ 28.52 in February 2020 to $ 30.85 in September 2021, according to the Department of Labor.

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