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In 2015, an article on bloomberg.com noted that Walmart, Starbucks, TJ Maxx, IKEA, Gap, and several other big retailers had announced increases in the wages they were paying newly hired workers. The same article also noted that "labor
turnover in the retail sector has been steadily rising and now stands at 5 percent a month."
Source: Kyle Stock and Kim Bhasin, "Why Retailers Are Suddenly Desperate to Keep Their Least-Valuable Workers," bloomberg.com, March 6, 2015.
The term "labor turnover" used in the article means the
A. termination of an employee from an establishment for due cause.
B. count of all new workers.
C. separation of an employee from an establishment.
D. count of all workers who have ever worked for the company.
The increase in labor turnover and the increases in entry-level wages being paid by large retailers are
A. not connected because the decision to pay higher wages cannot change the need for people to change jobs from time to time.
B. not connected because the decision to pay higher wages was made by all the firms, while turnover occurs for different reasons at different firms.
C. connected because higher wages cost firms more, and lower both employment and turnover
D. connected because higher wages can encourage workers to stay longer, thereby lowering turnover rates.
Click to select your answer.
