Retailers are less enthusiastic about hiring as economic uncertainty builds.
The industry lost 6,000 jobs in February, the Bureau of Labor Statistics (BLS) reported Friday. The fall was modest, some of which reflected the attacks of the labor force among food and drink sellers. However, the falloff showed a sharp turnaround from the previous month.
“The decline we saw in retailer posts and added jobs is slow, but it does exist,” said Allison Srivastaba, economist at the job listing site. “I don’t think there’s a big swing or drop, but there may be some slow leaks instead.”
The retailer hired 29,500 net people in January, most of which were in a broad “general product” category, but the long-term trend is moderate. The BLS said Friday that despite the season’s ups and downs, retail employment levels have been essentially flat for the past year. Ziprecruiter’s chief economist Julia Pollak choked some of it into e-commerce and automation, a “moving to self-checkout in particular,” but acknowledged headwind growth.
Industry-wide employment announcements fell for the third consecutive year, before rising last year in 2020. A retail dive review of data tracked by outplacement company challenger Gray & Christmas has recently been discovered. However, the 2024 level was 40% lower than the 2019 level.
In all industries, the number of people who want full-time jobs but settled on part-time jobs increased by 460,000 last month, jumping at a total of 4.9 million, BLS data shows. Many of them may be shifting together across the retail sector. Reports Friday showed that multiple employers tally exceeded 9 million in February, up from 8.4 million the previous year.
It is typical for retail employment to cool down after holidays as employers drop out seasonal workers who have scooped up for busy gifting periods. Also, with 2025 ongoing, some operators are still staffed. Last month, warehouse clubs, supercenters and other general merchandise sellers attracted 10,000 jobs and added last month, according to BLS.
Still, retailers recorded employment profits of nearly 20,000 people at the same time a year ago, and analysts say many retailers are preparing for the turbulence.
The decline seen in added retail posts and work is slow, but it does exist.
In fact, economist Alison Srivastava
“We’re committed to providing a range of services to our customers,” said Bea Chiem, Retail and Consumer Management Director at S&P Global Ratings. “This is supported by a softer view of uncertainty about consumers and the tariffs and the geopolitical environment. Immigration policy can also affect labor and wage outlook.”
In the retail industry, sales fell sharply in January. Many consumers are more pessimistic and increasing savings while curbing their spending. President Donald Trump’s whipping trade policy has led management to speculate how much additional costs will be from his tariffs on the country’s top trading partners. Some retail heavyweights, including Target and Best Buy, already have to step in some of their invoices to their customers.
Prior to Friday’s report, there were indications that retailers were downsizing. Employers in the sector have announced more than 45,000 job cuts so far this year, according to the latest Challenger report released Thursday.
Part of the cuts in work reflects store closures. Fabric Chain Joan said last month that it has closed all 800 locations after failing to find a buyer. The company reported that it had hired about 19,000 people in January, many of whom are employed in part-time roles.
The industry-wide store closures have been with another 15,000 recent forecast warnings in 2025 since the pandemic last year. That analysis was led by Coresight Research, Party City, Big Lots, Walgreens, 7-Eleven and Macy’s in store closure plans so far this year.
Walgreens announced Thursday that they had signed a contract to become private. It concludes a difficult post-pandemic period and a recent plan to close 1,200 stores. Chiem hopes that more retailers will save money this year by storing the closure or at least tapping on the brakes on the opening.
“Higher costs, reduced labor supply and macroeconomic uncertainty are key themes,” she said.
Realtate Services Company JLL announced in its report last month that its retail closures outweighed its recent opening. Restaurant and grocery store operators were planning more openings than they closed, but all other categories of retailers, from apparel sellers and drug stores to furniture providers and department stores, all saw the reverse of last year and the first few weeks of 2025.
Not all retailers are carrying it badly. Walmart benefits from an influx of wealthy shoppers seeking low prices, but even the country’s largest private employers have warned that it is not “immunized” due to the effects of tariffs. There are early indications that the conversion efforts at Macy’s (plans that include store closures) have been somewhat successful. And Gap stocks surged late this week after the brand’s holiday season results beat investors’ expectations.
However, industry experts say it’s not the best way for many retailers to take on new challenges. Some people struggle to navigate consumer shifts to e-commerce and higher costs from inflation. Meanwhile, sudden interest rates have overwhelmed credit card funding, which many shoppers rely on to maintain their spending.
Pollak said these concerns, particularly small employers, have engrossed much of the industry for the past three years, have immersed many of the industry.
“There are also people who are worried about policy uncertainty right now,” she said.