Walmart Canada announced on Thursday a $53 million investment to increase hourly wages for about 40,000 store associates. This move is part of the retailer’s ongoing efforts to enhance employee retention through increased investments over the past few months.
In addition to the Canadian wage increases, Walmart has been investing significantly in its U.S. workforce. Effective February 1, the company raised the annual average salary and bonus for its U.S. store managers. In June, Walmart announced bonuses for U.S. hourly store workers, including those at pharmacy and Vision Center locations, potentially boosting wages for 700,000 front-line employees.
The wage hike comes amid Canada’s easing inflation rates and rising unemployment, with June seeing an unexpected slowdown in inflation and a 29-month high unemployment rate. These economic conditions indicate challenges in the labor market as it struggles to accommodate a rapidly growing population.
Walmart Canada operates over 400 stores nationwide and employs more than 100,000 associates. The company also invests in digital handheld devices for store associates, enabling them to look up items more efficiently.
By prioritizing wage increases and technological investments, Walmart Canada aims to enhance employee satisfaction and operational efficiency.