Starting next month, Target will raise its minimum wage to $9 an hour. Sound familiar? That's because Target’s decision comes just one month after its competitor Walmart said it would raise its starting wage to $9 and eventually $10 per hour. T.J. Maxx and Marshalls have also announced a new $9 an hour base. These minimum wage increases reflect an improving economy and the impact of widespread protest through campaigns like the fast food strikes and OUR Walmart.
The business press, unsurprisingly, chalks up the hikes to an improving economy. The Wall Street Journal writes, "Target’s move is the latest example of a tightening labor market and rising competition for lower paid workers amid declining joblessness and signs that consumer confidence is returning." At 5.5%, the country's unemployment rate is at its lowest in six years. Earlier this year, a review of several studies found that higher wages led to more productivity and lower turnover rates, which can then lead to higher profits for companies.
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