What will Amazon's new pay policy do to labor markets?



The announcement by Amazon that it is raising its minimum wage for all US employees to $15 per hour will probably shake up labor markets, but my guess is it will have more effect in other parts of the country, as tightness in the Philly/NJ/DE region has already put considerable pressure on employers to up wages, particularly for less skilled labor, as there are only so many bodies to go around. During the Holiday season it will be difficult for many to reach hiring goals in the Northeast.

Looking at the map (from a year ago) of Amazon fulfillment centers in the country, there is a large concentration around eastern PA, Delaware, and New Jersey. But the market is already headed upwards there in terms of wages. I know some other regions where a difference of $2-4 dollars per hour can have a real impact upon workers.