Retail

US retail job openings plunge from 1.34 mn to 717K in Mar 2023

10 May '23

2 min read

Pic: Shutterstock/bernardbodo

Insights

US retail job openings fell 46 per cent YoY from 1.34 million to 717,000, impacting major retailers and leading to widespread layoffs.
Across all US industries, job openings fell 15 per cent to 9.6 million, 20 per cent lower than the peak in March 2022.
Retail hiring rates are also at their lowest since October 2019, while wage growth has stabilised.

US retail job openings have plummeted to their lowest in March 2023 since the beginning of the COVID-19 pandemic, reflecting the headwinds of soaring interest rates and looming recession fears that continue to suppress consumer demand. March saw a 46 per cent year-on-year (YoY) drop in retail trade job openings, with the number dwindling from a record 1.34 million to 717,000.

In tandem with the decline in job vacancies, consumer spending remained flat in March, further exacerbating the predicament of key players in the retail sector. Companies such as Bed Bath & Beyond Inc, David’s Bridal LLC, Serta Simmons Bedding LLC, and Party City Holdco Inc have been hard hit, leading to bankruptcy filings and widespread layoffs that have affected thousands in 2023, author Brian Scheid wrote in an article titled ‘US Retail Job Openings Fall on Fears of Consumer Demand Decline’ for S&P Global.

However, the retail sector is not alone in this downward trend. Across all US industries, job openings fell by 15 per cent from the end of 2022 to 9.6 million in March. This figure represents a 20 per cent decrease from the peak of nearly 12.03 million job openings recorded in March 2022, as per the latest Bureau of Labor Statistics’ (BLS) report.

The retail industry has been particularly affected, with the hiring rate—the monthly hires as a percentage of total employment—hitting its lowest since October 2019, BLS said.

On the wage front, the initially skyrocketing growth aimed at enticing reluctant workers back into the workforce has begun to stabilise. This moderation is further underlined by the fact that the trend of workers quitting jobs in search of higher pay seems to be abating, with quit rates reverting to pre-pandemic levels.

Fibre2Fashion News Desk (NB)

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