Wage Increase In Walmart Could Indicate An Improvement In Employment

Posted On 22 Feb 2015
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Tag: more jobs in walmart, more wages In Walmart,

The decision of giant Walmart distribution of raising the minimum wage than half a million employees could give the signal awaited US for an acceleration of remuneration, in a labor market tightens.

World number one distribution announced Thursday that from April, will pay $ 9 per hour to about half of its staff in US dollars 1.75 over the current national minimum wage since 2008.

The initiative of the White House to raise the current minimum of 7.25 to $ 10.10 faces opposition from Republicans in Congress, but about twenty States have recently announced increases in minimum wage, either legislating or proposed referendums.

The near absence of wage increases in recent years in the United States is one of the determinants of economic growth, which reached 2.4% in 2014, with an unemployment rate fell to 5.7% currently to 10% in late 2009.

“This indicates that Walmart looks to the future and wants to control the recruitment problems. The group wants to retain employees,” said independent economist Joel Naroff AFP.

The job outlook

“We offer an increase to 500,000 employees” represents a lot of money (1,000 million) but the departure of employees or staff turnover also very expensive, “he added.

Considering the size distribution giant, initiative could also “set a floor on the wage structure and the effect of competition, to be followed by other companies, estimated Naroff.

According to the economist, Walmart initiative shows that the labor market begins to tighten, giving more options to jobseekers, who lean toward the best deals paid or providing more social benefits.

Walmart, which relies largely part-time employees, found that the availability of workers reached a peak after the financial crisis began to decrease.

With the return of growth, their average hourly wage earners and low wages begin to find full-time jobs, says Naroff.

Doug McMillon, the young new CEO of Walmart, agreed on Thursday. “We want everyone to be fully aware that in-store experience is vital to our future,” McMillon, 48, CNBC economic chain.

“The cashier today is the store manager and the manager tomorrow morning probably have my job,” he said, who began his career at 18 years.

In 2012 and 2013, several distribution centers, mainly in the region of Chicago, Illinois, strikes and demonstrations, which criticized employees low wages, unpredictable hours and an arbitrary personnel management were recorded.

Response to problems

Walmart problems revolve around issues of stocks, long queues at banks, service and customer inefficient staff discontent” summarized Paul Trussell, an analyst at Deutsche Bank.

The freezing of wages in the United States is criticized for months by many economists, primarily in the reports of the Federal Reserve (Fed).

He is also seen as a factor that influences the low inflation that persists in the country, which conditions the Fed in normalizing monetary policy.

Efe remember that Walmart, the largest retailer in the world and includes the namesake stores and operated the Sam’s Club brand, had a net profit of 16.363 million dollars in the fiscal year that ended last January 31.

In explaining their results, Walmart noted that sales generated in the United States rose 3.1%, reaching 288.049 million dollars.

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