Half of Walmart’s US Workforce Is Part Time, Capping Opportunity

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By Douglas A. McIntyre Updated Published
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Half of Walmart’s US Workforce Is Part Time, Capping Opportunity

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If a new study by OURWalmart, an organization which loosely represents the interests of Walmart Inc. (NYSE: WMT) workers, is correct about half of the world’s largest retailer’s U.S. staff is part-time. This means they could struggle as they hope to climb higher on the Walmart promotion ladder.

The business benefits of part-time workers is obvious. Walmart has more control over the time of these people.  It most likely does not have to pay them expensive benefits. With a staff of nearly 1.5 million in the U.S, this must save hundreds of millions of dollars each year.

The study which was done in March and April and polled 6,176. Of those 87% were current Walmart workers. The conclusion:

Over the last decade, Walmart has quietly been reducing full-time positions and shifting to a part-time workforce. In 2005, 80% of Walmart’s associates were full-time. In 2018, an estimated 50% Walmart’s U.S. workforce is part-time.20In contrast, nationally, 29% of people working in retail are part-time.

It appears that Walmart may be pursuing a deliberate part-time strategy. A 2005 internal memo from Susan Chambers, then serving as Walmart’s Executive Vice-President of Benefits, proposed “increasing the percentage of part-time Associates in stores” as a “major cost-savings opportunity.”

The comment was from a over a decade ago, and probably means little now. However, the study claims to support the conclusion about the composition of Walmart’s work force.

The two other major conclusions of the research is that 69% of part-time workers would like to work full-time. The other is that part-time workers are often excluded for a chance to get better opportunities at Walmart.

Walmart increased it minimum wage to $11 this year. And, full time workers enjoy better benefits than before. However, many experts in income say that even at $11, some Walmart workers do not make enough money to keep them much above the poverty level. That means part-time workers are more likely to suffer from the problem, unless, perhaps, the have other work.

Are the results of the OURWalmart survey right? If so, many people who work at Walmart are trapped in an income vice which they cannot get out of

 

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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