New York (CNN Business) Costco this week raised its starting wage for hourly store workers in the United States for the second time this year as businesses hike pay to draw and retain workers amid a labor shortage.
Costco COST Amazon AMZN Target TGT Walmart's WMT told employees last week that it would increase its minimum wage from $16 an hour to $17 starting on Monday.
Costco has around 180,000 US employees, and 90% of them work hourly.
Costco's new starting wage puts the chain— which has among the lowest turnover rates in the retail industry— $2 per hour aboveand other top retailers' minimum wage, and $5 an hour above.
Costco raised its minimum wage to $14 in 2018 and $15 in 2019.
In February, the Issaquah, Washington-based company hiked it to $16 an hour.
"These increases are part of Costco's continuing efforts to ensure our hourly wages remain extremely competitive in the retail industry," Costco CEO Craig Jelinek said in a memo to employees. »