Starbucks Increasing Wages and Benefits for 150K Employees

[pbrower2a]

What has happened? Big employers have been able to keep wages stagnant for a long time. There is now pressure in the labor market -- real shortages for good workers. Losing good workers and having to settle for not-so-desirable workers (such as ex-cons and the mentally-limited) isn't a valid choice for companies that rely upon trust in dealings with merchandise, complex instructions,  or good customer service.

A company like Starbucks might be able to attract workers who have the 'wrong' college degrees who would rather have interactions with customers than perhaps they would find in a convenience store. But as the economy improves one tuns out of such workers. If you want people capable of some intelligent chit-chat with customers, you now have to pay for people with some intelligence and education.

The tax cut had little to do with it. Corporate America had a gold mine with so many educated people and so few openings available.