NEW YORK (AP) — FedEx is getting hurt by the tight job market.
The package delivery company said Tuesday that its costs are up $450 million in the most recent quarter, as it paid higher wages as it got harder to find new workers and demand for shipping increased. FedEx also cut its outlook for the year, saying earnings will be lower than it previously expected, partly due to the increased costs related to the tight labor market.
Shares of FedEx Corp. fell 4% in after-hours trading.
Competition for hourly workers has become fierce, and many companies are offering higher pay, sign-on bonuses and other incentives. It may get worse during the holidays as companies seek help getting gifts and online orders to shoppers. Online shopping giant Amazon is looking to hire 125,000 people; delivery company UPS is seeking 100,000; and FedEx wans to hire 90,000.