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An Annual Report on Full-Time Classified State Employee Turnvover for Fiscal Year 2001

December 2001

Report Number 02-701

Overall Conclusion

The statewide turnover rate for fiscal year 2001 was 17.6 percent, down slightly from last year's rate of 18.9 percent. This rate continues to be higher than rates around the country. The average turnover rate for state governments nationwide was 12 percent; selected local governments averaged

13 percent; the national private sector rate was 15 percent. A conservative estimate of the State's cost for turnover in fiscal year 2001 was $254 million. The State realized a small decrease in turnover this year. It is possible turnover may decrease again next year due to economic factors and world events. However, in her "Report on the American Workforce," Secretary of Labor Elaine L. Chao points us to three issues that will affect our nation in this century.

Key Facts and Findings

  • "The skills gap. Our economy is making an unprecedented transition into high-skilled, information-based industries. This has created a gap between the jobs that are being created and the current skills of many workers."
  • "Our demographic destiny. In just a few decades, we will have a growing class of retirees and a shrinking workforce. In addition, there will be an increasingly diverse group of Americans entering the workforce, bringing with them the need for truly new ways of organizing and managing work."
  • "The future of the American Workplace. Workers are leaving employers more often. The average 34-year-old has already worked for nine different companies in his or her brief career."

The State of Texas will surely face these same issues.

Texas also experienced the largest percentage of turnover with state employees who were under 40 years old or had less than two years of agency service. Combining these two turnover trends with Secretary Chao's issues paints a picture of a changing workforce where long-term forecasts need to be observed over any short-term dips in turnover.

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