Wages increase for some retail employees

First Walmart and now TJ Max.  Both retailers have decided to increase bottom line wages for the average worker in an effort to increase worker moral.  “This pay initiative is an important part of our strategies to continue attracting and retaining the best talent in order to deliver a great shopping experience, remain competitive on wages in our U.S. markets and stay focused on our value mission,” TJX Chief Executive Carol Meyrowitz said in a statement.

Will other retailers follow?  Good question that remains to be answered.  And why is this important to mortgage rates?  One of the first signs of inflation is an increase in wages however it’s not always 100% certain that if wages increase so does inflation (inflation is bad for mortgage rates). Instead of inflation we may just see margins squeezed if these retailers cannot raise prices.