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Target to have $15 per hour minimum wage by end of 2020

September 27, 2017

Retailer Target Corporation said it will raise its hourly minimum wage to $15 per hour by the end of 2020.

Target will take a step toward the $15 per hour level starting next month when it raises its minimum wage $11 from $10 for all its US stores. This increase will also apply to the more than 100,000 hourly team members Target is hiring for this holiday season to fill a variety of roles across stores, distribution and fulfillment centers.

According to Staffing Industry Analysts’ research, the average temporary agency worker hourly wage for cashiers was $10.51 in May 2016. And with plans to hire 100,000 holiday workers in an already competitive market for workers, Target’s policy provides more evidence that temporary staffing providers may need to raise pay rates to compete for workers.

The warehousing and distribution industry has been experiencing significant growth in recent years, according to SIA Research Manager Timothy Landhuis. Warehousing and distribution occupations have traditionally been one of the largest occupational segments of the industrial staffing market, with temporary workers comprising a high percentage of workers in these roles.

On average, Target employs 160 team members per store at its 1,816 locations. Target’s last major wage increase was in 2016, when the company moved to a $10 minimum hourly wage. A minimum hourly wage of $11 is higher than the minimum wage in 48 states, and matches the minimum wage in Massachusetts and Washington.