What Apple's employee bonus says about the job market

By TechnologyFOXBusiness

Apple to create 20K jobs in America

Wall Street Journal global economics editor Jon Hilsenrath on Apple's plans to create 20,000 new jobs in America.

Apple (NASDAQ:AAPL) is one of the latest companies to provide bonuses to employees following the passage of tax reform, offering $2,500 for most employees as a restricted stock bonus.

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While tax reform is behind Apple’s move, it could also be yet another positive signal about the state of the U.S. job market and a potential strategy by the company to retain employees.

The U.S. unemployment rate is currently at 4.1%, and according to the Federal Reserve’s Beige Book, the job market is tight enough that some employers are having a hard time finding workers.

Will Potter, co-founder at executive search firm Bamboo Talent, which focuses on tech executives, told FOX Business that the current job market is “highly competitive” with small tech companies and startups having a hard time competing with the big tech companies such as Apple, Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX).

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“The increase in the value of these companies’ restricted stock is astronomical, and it’s hard for potential employees to not consider working for a publicly traded [technology] company, rather than a startup,” said Potter.

According to Paysa, the average tenure at Apple is 1.85 years. Last January, Apple announced that in 2016 it had a record-high employee retention rate of 81%.

Apple did not return FOX Business’ request for comment by the time of publication.