Others interpreted the high rates of labor turnover as an indication of worker dissatisfaction and labor relations problems. (See for example, Douglas 1918, Lescohier 1923, and Slichter 1921.) Some of these studies focused on the irregularity in labor demand which resulted in seasonal and cyclical layoffs. (See Figure 1 and its notes.) Firm and state level data (from the late nineteenth and early twentieth centuries) also indicate that labor turnover rates exceeding 100 were common to many industries.Ĭontemporaries expressed concern over the high rates of labor turnover in the early part of the century and conducted numerous studies to understand its causes and consequences. These data show high rates of labor turnover (annual rates exceeding 100%) in the early decades of the twentieth century, substantial declines in the 1920s, significant fluctuations during the economic crisis of the 1930s and the boom of the World War II years, and a return to the low rates of the 1920s in the post-war era. ![]() workers is available from a series of studies focusing almost entirely on the manufacturing sector. The aggregate data on turnover among U.S. Labor turnover is typically measured in terms of the separation rate (quits, layoffs, and discharges per 100 employees on the payroll). It was only in this context that interest in measuring labor turnover and understanding its causes began. ![]() The rise of large scale firms in the late nineteenth century and the decreasing importance (in percentage terms) of agricultural employment meant that a growing number of workers were employed by firms. Consequently, concern with the issue and interest in measuring such movement only arose when working for an employer (rather than self-employment in craft or agricultural production) became the norm. ![]() Labor turnover measures the movement of workers in and out of employment with a particular firm.
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