U.S. retail sector is contracting

The August issue of The Employment Situation was recently released by the Department of Labor. It revealed that US apparel retailers are not contributing to job growth and in fact the apparel retail sector is shrinking.
The report revealed that 151,000 nonfarm jobs were created in August, 2016. This is a drop from July which saw 275,000 nonfarm jobs created. Key growth industries were food service and financial.

While retail added 15,100 jobs in August, they primarily were in building materials stores and food stores.

Apparel industry jobs actually declined as department stores saw cuts of 2,800 jobs and clothing and accessories stores cut jobs by 1,800.

In the face of major US retailers such as Macy’s announcing it is shuttering doors and redirecting to online sales, these numbers are not particularly surprising.

Manufacturing also saw a steep decline of 14,000 jobs with textile mills specifically cutting 600 jobs. Textile product mills and apparel manufacturing sectors each cut 400 jobs as well.