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Report Affecting Multiple Agencies

An Annual Report on Full-Time Classified State Employee Turnover for Fiscal Year 1997

November 1997

Report Number 98-703

Overall Conclusion

The fiscal year 1997 turnover rates of 14.27 percent for full-time classified state employees and 13.89 for full-time exempt state employees appear to be slightly above local, state, and national averages. The turnover rate for full-time classified employees has steadily increased over the last five years.

A greatly improved local economy has had the effect of lowering the local unemployment rate to approximately 3.30 percent. The Greater Austin Chamber of Commerce expects continuing expansion of the work force throughout the remainder of the decade, growing at an average of 3.50 percent to 4.50 percent per year. With employment at nearly full capacity, employers are forced to offer higher wages to attract new employees. This can cause a rise in turnover rates as employees make the most of higher wages. High turnover can be cyclical and may experience a reduction if economic trends change.

Key Facts and Findings

A continually expanding local economy combined with low unemployment has created an incentive for employees in all job categories to continue to look for other employment opportunities.

The majority of turnover rates reviewed have increased over last year's rates, indicating the impact of a stronger economy nationwide.

Turnover rates for Information Technology professionals are in the 20 percent range. While these turnover rates may not be critical statewide, the State may need to make additional efforts to recruit and retain these employees.

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