NRF: Retail industry employment declined slightly in July
1,700 jobs less than in June, although some retail sectors saw job gains
Retail industry employment declined slightly in July, decreasing 1,700 jobs from June, the National Retail Federation said today. The numbers exclude automobile dealers, gasoline stations and restaurants. The economy overall saw gains of 209,000 jobs in July, exceeding growth expectations for the month.
“Overall job and wage growth are positive indicators for the retail industry since it means consumers have more money to spend when they come into stores or shop online,” NRF Chief Economist Jack Kleinhenz said. “Of note, the oft-maligned department store sector has had two consecutive months of job increases. With back-to-school shopping ramping up and the holiday season just around the corner, retailers will only be busier in the weeks and months ahead.”
On a three-month average, retail jobs have decreased by 4,200 jobs as calculated by NRF using current government data.
The Labor Department has slightly different numbers
Kleinhenz noted that retail job numbers reported by the Labor Department don’t paint an entirely accurate picture of the industry because they count only employees who work in stores while excluding retail workers in other parts of the business like corporate headquarters, distribution centers, call centers and innovation labs.
While the sporting goods sector saw decreased employment in July, department stores, building materials and supply stores, and health and personal care stores all saw job gains. Department store employment has increased for the past two months, with June and July gaining a combined total of 6,000 jobs. The increase in health and personal care employment was a reversal of June’s decline in jobs.
Economy-wide, average hourly earnings in July grew 2.5 percent year-over-year, keeping pace with the increase in June. The Labor Department said July unemployment was at 4.3 percent, down from 4.4 percent in June.