Home Depot boosts pay for hourly workers

Home improvement giant The Home Depot announced it is investing another $1 billion to raise pay for its frontline hourly workers, with minimum starting pay at $15 an hour.

Home Depot announced Tuesday that the company is giving its frontline workers a raise, saying it is dedicating $1 billion to boost compensation for hourly employees. The minimum starting pay at the home improvement giant is now $15 an hour.

In a message to all U.S. employees, Home Depot CEO Ted Decker said the higher wages went into effect on Feb. 6 and that some workers have already seen their raises reflected in their Feb. 17 paychecks. All other hourly workers can expect a larger paycheck starting Feb. 24.

MORE THAN 60 COMPANIES TRIED A FOUR-DAY WORK WEEK AND RESULTS SHOW WHY 92% ARE KEEPING IT

"Since 90 percent of our store leadership started as hourly associates, today’s new hires are our future leaders," Decker wrote. "This investment will help us attract and retain the best talent into our pipeline."

The announcement came the same day Home Depot reported its fourth quarter and fiscal 2022 results, posting a surprise drop in comparable sales for the quarter and forecasting annual profit below Wall Street expectations. The company warned of waning consumer demand for home improvement goods as inflation chews away at Americans' budgets.

AMAZON STOCK DROP HAS WORKERS FACING PAY SQUEEZE

Home Depot follows fellow retail behemoth Walmart in hiking worker pay as companies scramble to hire and retain workers in the tight labor market.

Walmart also reported earnings Tuesday, joining Home Depot in forecasting full-year earnings below estimates. The retailer said it was cautious about the economic outlook for 2023 and warned consumers were likely to continue shopping for lower-priced items that could pressure its margins.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

FOX Business' Joe Toppe and Reuters contributed to this report.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.