# Walmart CEO Doug McMillon Says Hiring and Retention Has Improved
After pandemic-fueled higher turnover and fiercer competition for workers, Walmart CEO Doug McMillon said it’s gotten easier to hire people and get them to stick around. In an interview with CNBC’s Sara Eisen on “Squawk on the Street,” McMillon stated that the unusual employment market of the past few years has changed, and Walmart is now able to staff around the country with more continuity and lower turnover rates.
## Walmart’s Role as a Barometer for the Labor Market
As the nation’s largest private employer and largest grocer, Walmart’s hiring trends and labor market conditions are closely watched. With approximately 1.6 million employees in the U.S., Walmart’s actions often reflect the health of the consumer and the strength of the country’s labor market. Earlier this year, Walmart raised its minimum wage for store employees to $14, up from $12 an hour. Competitors like Target, Amazon, and Best Buy had already increased their minimum wages to $15 an hour.
## Signs of a Cooling Labor Market
Walmart’s decision to cut starting pay for new store employees who pick and pack online orders and stock shelves by about a dollar an hour earlier this year signaled a potentially cooling labor market. Government data also supports this trend, with job openings falling to their lowest level in two and a half years in October, according to the Labor Department. The ratio of job openings to available workers is nearly at pre-pandemic levels.
## Walmart’s Hiring Strategy and Future Outlook
Despite the upcoming busy holiday season, Walmart did minimal hiring because it was already adequately staffed. During the pandemic, Walmart faced significant changes and complexities in its workforce. The company hired individuals from industries heavily impacted by the pandemic, such as bartenders and waiters, and also dealt with store workers taking leave due to COVID-19. While wages are still increasing, McMillon mentioned that the percentage increase won’t be as substantial as before.
Looking ahead, McMillon predicts tighter budgets for U.S. households next year, even as prices fall on some items. He also highlighted the impact of generative artificial intelligence on employees’ jobs. As Walmart implements AI technology to drive greater productivity, the workforce is expected to remain the same size but shift to different roles. McMillon envisions fewer employees in store backrooms and more on the sales floor, with automation taking on physically intensive tasks. The goal is to enable employees to extend their careers and have a better work-life balance.
In conclusion, Walmart’s CEO Doug McMillon expressed optimism about the improved hiring and retention situation at the company. As Walmart continues to adapt to changing labor market conditions and invest in technology, it aims to provide better opportunities for its employees while meeting the evolving needs of customers.
