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Are Higher Wages Good or Bad for Walmart?

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BENTONVILLE, AR--Whenever somebody talks about raising the minimum wage, you hear how that's a job-killer.

You might have seen the headline on your Facebook page: "Walmart Raises its Minimum Wage, Immediately Does This Next."

The story in "The Federalist Pages," says Walmart had to lay off a thousand employees at its home office in Arkansas--and shut down five stores.

Sounds pretty bad.

Walmart TurnoverBut then, "ThinkProgress" reports: "Walmart raised wages in April. It's already seeing the benefits."

The article says turnover is down, and job the number of job applicants is up.

So who's right?
walmart statement

A spokesperson confirmed to NewsFix, turnover is down. He says, "Being able to keep a higher performing staff is absolutely a good thing for us."

The spokesperson says the five stores did close, temporarily, because of plumbing problems. They should be back open in time for holiday shopping.

And about those corporate layoffs: it's true. But Walmart says the layoffs and the wage increase are not related.

So at least for now, Walmart says the wage increase is a good thing. We'll have to watch and see what happens in February, when the company is set to raise wages again.

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