[US] Walmart hiring and wage pressures ease

In the US, Walmart CEO Doug McMillon has announced that it has become easier to hire and retain people. Previously the labour market was altered by the pandemic-fueled high turnover of staff and heightened competition for workers, CNBC reports.

In a December 6 interview with CNBC’s Sara Eisen, Mr McMillon said, “It’s more normalized. The unusual employment market that we saw the last few years has changed. We are able to staff around the country. Our turnover’s down. We’ve got more continuity, which is helping a lot.”

Walmart is America’s largest private employer and largest grocer with around 1.6 million employees. The retailer is reportedly considered a barometer of the health of the consumer and the strength of the US labour market. Earlier this year, Walmart raised the minimum wage for store employees to $14. Its previous minimum wage was $12 an hour.

Competitors Target, Amazon and Best Buy had previously increased their minimum wages to $15 an hour.

Walmart indicated a potentially cooling labour market in September by cutting the starting pay for new store employees - pickers and packers of online orders and shelf stackers - by around a dollar an hour.

Government data also suggested a cooling labour market. Job openings fell in October to their lowest level in two and a half years, according to the Labor Department. The ratio of job openings to available workers has reportedly almost returned to pre-pandemic levels, with the ratio at 1.3 to 1.

In the interview, the CEO said that even when preparing for the busier holiday season, Walmart did minimal hiring because it was “pretty much staffed.”

During the pandemic, Walmart’s workforce faced significant change and complexity, he said. The company took on former bartenders, waiters and other people who were out of work and new to retail. It also dealt with store workers who had to take leave when sick with Covid.

He said wages are still going up, but “the percentage increase won’t be as much as it was.”

“It’s more normalized as well,” Mr McMillon said.

In addition, generative artificial intelligence has begun to alter employees’ roles, too, Mr McMillon said. As Walmart reportedly drives greater productivity with the technology, he explained that he expects the workforce to remain the same size, but shift to different roles.

During the interview, Mr McMillon reportedly said he expects fewer employees in store backrooms but more on the sales floor. As Walmart adds automation to its supply chain employees will supervise rather than take on physically intensive tasks, he said.

“That’s what we’d really like, to have people extend their careers and be able, when work is over, to be able to go coach their kids’ soccer teams instead of being tired because they lifted so much weight all day.”

Source: CNBC

(Links and quotes via original reporting)

In the US, Walmart CEO Doug McMillon has announced that it has become easier to hire and retain people. Previously the labour market was altered by the pandemic-fueled high turnover of staff and heightened competition for workers, CNBC reports.

In a December 6 interview with CNBC’s Sara Eisen, Mr McMillon said, “It’s more normalized. The unusual employment market that we saw the last few years has changed. We are able to staff around the country. Our turnover’s down. We’ve got more continuity, which is helping a lot.”

Walmart is America’s largest private employer and largest grocer with around 1.6 million employees. The retailer is reportedly considered a barometer of the health of the consumer and the strength of the US labour market. Earlier this year, Walmart raised the minimum wage for store employees to $14. Its previous minimum wage was $12 an hour.

Competitors Target, Amazon and Best Buy had previously increased their minimum wages to $15 an hour.

Walmart indicated a potentially cooling labour market in September by cutting the starting pay for new store employees - pickers and packers of online orders and shelf stackers - by around a dollar an hour.

Government data also suggested a cooling labour market. Job openings fell in October to their lowest level in two and a half years, according to the Labor Department. The ratio of job openings to available workers has reportedly almost returned to pre-pandemic levels, with the ratio at 1.3 to 1.

In the interview, the CEO said that even when preparing for the busier holiday season, Walmart did minimal hiring because it was “pretty much staffed.”

During the pandemic, Walmart’s workforce faced significant change and complexity, he said. The company took on former bartenders, waiters and other people who were out of work and new to retail. It also dealt with store workers who had to take leave when sick with Covid.

He said wages are still going up, but “the percentage increase won’t be as much as it was.”

“It’s more normalized as well,” Mr McMillon said.

In addition, generative artificial intelligence has begun to alter employees’ roles, too, Mr McMillon said. As Walmart reportedly drives greater productivity with the technology, he explained that he expects the workforce to remain the same size, but shift to different roles.

During the interview, Mr McMillon reportedly said he expects fewer employees in store backrooms but more on the sales floor. As Walmart adds automation to its supply chain employees will supervise rather than take on physically intensive tasks, he said.

“That’s what we’d really like, to have people extend their careers and be able, when work is over, to be able to go coach their kids’ soccer teams instead of being tired because they lifted so much weight all day.”

Source: CNBC

(Links and quotes via original reporting)