15 of the Biggest Employers in America

Twenty years ago, the Fortune 500's top 10 companies included several automakers, two oil companies, a tobacco company, Enron -- a company then on the verge of bankruptcy -- and Walmart. Flash forward to the latest Fortune 500, and Walmart is still on the list, as is IBM.

Companies are typically ranked according to their annual revenue or perhaps their market capitalization, but it's also instructive to see which companies are the largest in terms of employees -- after all, they're putting money into the pockets of many millions of Americans, keeping our economy going. Here's a look at 15 of the biggest employers in the Fortune 500.

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First up is Walmart (NYSE: WMT), which employed about 2.3 million people as of the end of its last fiscal year. Roughly 1.7 million of them toiled in the U.S. and about 600,000 worked outside the U.S. The company notes that some 94% of the workers are hourly, with about 69% being full-time. These numbers shouldn't be too surprising, given that the company boasts some 10,500 stores and clubs in 24 countries -- plus a busy website where millions shop.

The second-largest employer in America is Amazon.com (NASDAQ: AMZN), and that might surprise you, but not if you recall all those Amazon delivery trucks zooming around your neighborhood -- because they're zooming around everyone else's neighborhood, too. The company recently employed around 1.3 million people. It has often been accused of not treating or paying its workers as well as it could, and one group of workers has recently voted to unionize. On the other hand, the company pays an average of $18 per hour.

Home Depot (NYSE: HD), recently sporting a market value near $312 billion and more than 2,300 stores in all 50 states (plus the District of Columbia, Puerto Rico, Canada, Mexico, and beyond), employs around 500,000 people. Per a recent press release, it will be hiring 100,000 more people for the spring.

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Supermarket titan Kroger (NYSE: KR) recently employed 465,000 workers. You may think you don't shop at Kroger, but know that it has many other brands under its roof -- such as Ralphs, Dillons, Smith's, King Soopers, Fry's, QFC, City Market, Owen's, Jay C, Pay Less, Baker's, Gerbes, Harris Teeter, Pick 'n Save, Metro Market, and Mariano's. In total, Kroger has around 2,800 stores serving 9 million customers daily.

FedEx (NYSE: FDX) employs some 600,000 people, per its website. Its head count has been growing in recent years, as deliveries are becoming more and more a way of life in America -- encouraged to a significant degree by the ongoing pandemic. FedEx has lots of impressive numbers, such as a fleet of more than 200,000 vehicles, around 680 airplanes at more than 650 airports around the world, and average daily package volume of 18 million.

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Target (NYSE: TGT) is another major employer in America, with around 409,000 associates. It boasts more than 1,900 stores in all 50 states and claims that 75% of Americans live within 10 miles of a Target store. Notably, the company donates 5% of its profits to the communities in which it operates.

ALSO READ: 3 Reasons to Bet on Target in 2022

UPS (NYSE: UPS), like FedEx and Amazon, is in the delivery business -- which is experiencing a heyday. It employs 534,000 workers, per its website, delivering more than 25 million packages in more than 220 countries and territories. (That's pretty much all of them!) UPS rakes in close to $100 billion annually.

IBM (NYSE: IBM) is another major employer in America, recently with some 364,800 workers. It used to be known for its dominant hardware, but it has been transforming itself, specializing more now in higher-margin fields such as software and consulting. Indeed, its last annual report noted that 70% of its revenue comes from software and consulting. It rakes in more than $57 billion annually.

Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), helmed by Warren Buffett for more than 50 years, employed about 372,000 people at the end of 2021. It's a massive conglomerate, and its recent market value of $777 billion makes it one of the most valuable companies in America. Its many workers toil in dozens of companies that it owns, such as Geico, Fruit of the Loom, Benjamin Moore, International Dairy Queen, and the BNSF railroad. The company noted that of its workers, "approximately 77% were in the United States and 21% were represented by unions."

ALSO READ: 3 Reasons Why Berkshire Hathaway Stock Hit a New All-Time High (And It's Not All Because of Apple)

As of early October, Starbucks (NASDAQ: SBUX) employed about 383,000 people worldwide, some 245,000 of whom worked in the U.S. and 235,000 of those working in company stores. And there are a lot of stores -- some 34,000 at last count. Relatively few Starbucks workers are unionized, but there have been unionization efforts afoot in multiple locations. Starbucks was recently raking in around $30 billion annually.

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UnitedHealth Group (NYSE: UNH) may not be a company most of us think of very often, but it's a big one, and it's a big employer -- recently with a market capitalization of $482 billion and 350,000 employees. That workforce included close to 135,000 clinical professionals, among them around 85,000 physicians and nurses. UnitedHealth cares for close to 150 million people in all 50 states and many countries.

This list of big employers is rife with retailers, and that's not surprising, as all those stores require many workers. The TJX Companies (NYSE: TJX) is one such retailer, with close to 4,700 locations in the U.S. and eight other nations. In the U.S., these include 1,284 T.J. Maxx; 1,148 Marshalls; 850 HomeGoods; 59 Sierra; and 39 Homesense stores -- along with several online stores, too. In its latest 10-K filing, the company notes, "As of January 29, 2022, we had approximately 340,000 employees (who we refer to as Associates), many of whom work less than 40 hours per week. Approximately 86% of these Associates worked in our retail stores. We hire thousands of temporary employees each year, particularly during the peak back-to-school and holiday seasons."

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PepsiCo (NASDAQ: PEP) is not a retailer, but its offerings are found in many retail locations. It's a giant not only in the beverage business but also in salty snacks, as it's home to brands such as Lay's, Doritos, Cheetos, Ruffles, Tostitos, Fritos, and SunChips. (It also encompasses Quaker Oats.) PepsiCo recently employed around 309,000 people globally -- including around 129,000 people in the U.S. It notes, "We are party to numerous collective bargaining agreements and believe that relations with our employees are generally good."

In its own words, Cognizant Technology Solutions (NASDAQ: CTSH) "helps companies modernize technology, reimagine processes and transform experiences so they stay ahead in a fast-changing world." It's known today as a major consulting company, with specializations in technology such as cloud computing, artificial intelligence, digital strategies, security, and more. Cognizant ended 2021 with about 330,600 employees, 240,000 of whom worked in India. Elsewhere, 40,900 worked in North America; 15,700 in continental Europe; 8,100 in the U.K.; and 25,900 in "various other locations throughout the rest of the world."

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Finally, we come to Lowe's (NYSE: LOW), another major retailer that, like Home Depot, is focused on the home-improvement and hardware realm. In its latest 10-K filing, the company noted, "As of January 28, 2022, Lowe’s employed approximately 200,000 full-time associates and 140,000 part-time associates, primarily in the United States, India, and Canada." It added, "During the spring season, we temporarily expand our workforce by hiring associates in part-time, seasonal, and full-time positions to meet the elevated levels of demand." Lowe's rings up about 19 million customer transactions weekly, in close to 2,200 stores.

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It's good to keep up with what big companies are doing, as it can affect smaller companies, too -- such as when many major employers raise the minimum wage that they pay. These moves often affect many millions of workers directly or indirectly. Meanwhile, investors would do well to pay attention to companies' workforces, as big ones are very costly, and keeping them satisfied is important, to minimize employee turnover and keep costs down. Satisfied workers can lead to better productivity and more satisfied customers and shareholders, too.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Selena Maranjian owns Amazon, Berkshire Hathaway (B shares), and Starbucks. The Motley Fool owns and recommends Amazon, Berkshire Hathaway (B shares), FedEx, Home Depot, and Starbucks. The Motley Fool recommends Cognizant Technology Solutions, Lowe's, The TJX Companies, and UnitedHealth Group and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short April 2022 $100 calls on Starbucks, short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.