Amazon salary rises at 11.3% CAGR 2021-2025

AMAZON ANNOUNCE SALARY INCREASES

Amazon just recently announced a salary increase to $23 (source) for US fulfilment and transportation employees. Such increases in Amazon salaries since 2021 represent 11.4% CAGR 2021-2025.

This can have many different causes, but the most likely reason for this sharp increase in warehouse & logistics renumeration is likely due to growing problems with finding willing staff for Amazon warehouses.

The timing from mid-Covid to post-Covid is interesting as it may point to a shrinking labor pool, that cost of living is increasing, etc.

IMPACT ON THE WIDER MARKET

Amazon tends to be a leader in setting salaries and the rest of the market is likely to follow. 

This will be overall positive for the warehouse automation market as ROI calculations will improve.

However, the actual improvement for the sector may be limited as import tariffs are still working their way through the Bill of Materials for warehouse automation equipment.