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Turnover rate steep for new hires in Montana

Despite Montana unemployment numbers lingering at 7.3 percent, almost double that of the pre-recession summer of 2008, Montana has a steep turnover rate among newly hired employees. On average, only about one-quarter of new workers remain with the same employer a year later.

That low retention rate improved slightly during the last year, probably because more workers hang onto jobs during an uncertain economy, said Barbara Wagner, senior economist with the Montana Department of Labor and Industry Research and Analysis Bureau.

"But the retention rate among new employees is lower than folks who’ve stayed at their jobs, including myself, would expect," she said. "It’s an issue that should be a concern both for employers, who spend a lot of time and money hiring and training, and for those employees themselves, who won’t gain skills and advance to better paying jobs, if they don’t stay on."

The rapid turnover, or churn, is also bad for the economy and society in general, Wagner said. Having fewer skilled workers and more people who drift between entry level jobs can lead to reduced productivity and be a drain on unemployment insurance, food stamps and other social programs.

Written by
PETER JOHNSON

Full Story: http://www.greatfallstribune.com/article/20110724/BUSINESS/107240306/Turnover-rate-steep-new-hires

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