Advertisement
07/06/2018

Retail loses 20K-plus jobs in June

Job losses were concentrated in general merchandise stores, which were down 21,500; grocery and beverage stores, down 8,600; and electronics and appliances stores, down 3,700.

The retail industry lost more than 21,000 jobs in June, according to the Bureau of Labor Statistics.

June’s monthly drop followed a revised monthly gain of 23,600 jobs in May but Jack Kleinhenz, National Retail Federation’s Chief Economist, said the beginning of the volatile summer hiring season often brings large swings.

Coupled with downward revisions to April and May figures, the three-month moving average in June showed a loss of 1,300 jobs. However, the Labor Department said the unemployment rate was 4 percent, up from 3.8 percent in May.

"This is another solid, robust payroll increase that nicely closes out the second quarter and affirms a very strong economy,” Kleinhenz said. “It is consistent with how consumers feel about the economy and their personal finances. Nonetheless, while payroll gains should translate into increased spending in the coming months, if the trade war spreads it may become a turning point for consumer and business confidence that could affect spending.”

Kleinhenz also said that the retail job numbers reported by the Labor Department do not provide an accurate picture of the industry because “they count only employees who work in stores while excluding retail workers in other parts of the business such as corporate headquarters, distribution centers, call centers and innovation labs.”

According to the National Retail Federation article, June saw monthly gains in clothing and clothing accessory stores, which were up by 6,900 jobs, and non-store, which includes online, was up 1,700 jobs. Losses were concentrated in general merchandise stores, which were down 21,500; grocery and beverage stores, down 8,600; and electronics and appliances stores, down 3,700.