June Jobs Report Shows Retail Losses, What Happened?

What’s Driving Trends in Retail Jobs?

While the country is enjoying a growing, healthy economy with low unemployment, not all jobs are safe. After an addition of 28,800 retail jobs in May, the Bureau of Labor Statistics reports that the industry lost 22,000 jobs in June, most of those in general merchandise stores.[1] This comes after a December that saw 55% fewer jobs than December 2016. December is typically the biggest hiring month for retailers. What’s the explanation for these number?

E-Commerce Growth and the Amazon Effect

E-commerce grew by 49 percent in 2017 representing 13 percent of total retail sales, according to a U.S. Commerce Department.[2] Most of the credit for this increase belongs to the undisputed, e-commerce king, Amazon.

You can order almost anything from Amazon and in some circumstances have it delivered the same day. This convenience factor is enticing, especially to younger generations that would rather interface with technology than people. Millennials have been a big reason for the spike. A study from UPS and research company ComScore found that 51 percent of all millennial retail purchases are made online.[3]

This change in lifestyle and preferences has driven the nail in the coffin of department stores. Toys R’ Us shuddered all stores earlier this year. Macy’s, a once dominant retail force, is shutting down stores. And, there are countless others in bankruptcy.

It is not necessarily because these brands did not shift their strategy sooner. Amazon saw vulnerabilities and was able to get more shoppers on their site instead of in those stores.

In-Store Technology

Most everyone is familiar with self-check-out. These kiosks offer convenience to shoppers and allow retailers to cut back on cashier positions. Another in-store technology that is emerging is automation and AI that tracks inventory needs, which could then be stocked by robots.

The job in retail of “working the floor” has, for the most part disappeared, except in high-end stores. With technology enabling retailers to work leaner at their brick-and-mortar locations, they have the opportunity to cut costs. Those cuts leave workers without a job.

Other Trends to Watch

One interesting perspective is that the majority of jobs being lost are those that can be automated. This could open up opportunities for higher-paying, more skilled jobs in retail. Another thing to watch will be the new tariffs levied on China and how those will impact jobs. The bottom line is that shoppers changed; many retailers did not, which lead to their decline or demise.

[1] https://www.bls.gov/web/empsit/ceshighlights.pdf

[2] https://census.gov/retail/index.html

[3] https://pressroom.ups.com

Follow us on social media for the latest updates in B2B!

Image

Latest

sustainable transformation
The Path to Sustainable Transformation Is Rooted in Strategy, Execution and Reflection
November 1, 2024

Many strive for change, yet achieving and sustaining it is a complex journey. As people chase higher goals, often in career, personal growth, or relationships, the need to reevaluate approaches to sustainable transformation becomes apparent. Research suggests that nearly 80% of New Year’s resolutions fail by mid-February, indicating a need for sustainable systems, not…

Read More
cloud-based solutions
C3 Cloud-Based Solutions Delivers Real-Time Transparency, Driver Coordination, and Simulation Tools for a Resilient Supply Chain
October 31, 2024

The logistics industry faces constant challenges as the need for efficient, cloud-based solutions intensifies. Many warehouses continue to operate manually; up to 53% of employee time is spent on non-value-adding tasks like walking and searching for items, according to industry studies. This manual approach not only hampers efficiency but leads to significant delays, errors,…

Read More
personalized solutions
Personalized Solutions Through Data Are the Future of Aligning Healthcare Staff Needs with Patient Outcomes
October 31, 2024

The healthcare industry faces unprecedented challenges, with workforce shortages pushing hospital labor costs to over 60% of total expenses. This strain is compounded by rising burnout rates among healthcare providers, particularly nurses. A recent AMN Healthcare survey revealed that nurses are prioritizing well-being and flexibility in 2024, underscoring the urgent need for personalized solutions…

Read More
Transforming Education: Connected Education Kits for Rural Markets
Transforming Education: Connected Education Kits for Rural Markets
October 31, 2024

In the latest episode of The Edge and Beyond podcast, Michelle Dawn Mooney dives into the transformative role of technology in education, highlighting Intel’s Connected Education Kits. Developed in partnership with ApplianSys, these kits are designed to bring quality digital learning to underserved and remote communities. The discussion explores how these kits are a game-changer…

Read More