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According to the report, the U.S. economy shed 22,000 jobs in January, while the unemployment rate dropped to 9.7 percent. Even so, the labor market remains weak, with more than 4 million American jobs lost in the past year and 8.4 million jobs lost since the recession began in December 2007.

The retail industry added 42,100 jobs in January, with gains concentrated in department stores, groceries, and clothing retailers. Pharmacies and electronics retailers also added jobs, while furniture and building supply retailers trimmed payrolls slightly.

For the overall labor market, wages and hours worked both rose slightly, and firms added more than 50,000 temporary workers in January. While positives, these are also signs that employers remain hesitant to take on new permanent workers.
“Job growth in the retail industry is a welcome sign that the worst may be behind us.

But, for the millions of Americans without work, today’s report provides little comfort,” said RILA President Sandy Kennedy. “With the economy still fragile, American workers and businesses continue to look to lawmakers to take meaningful steps to add jobs and get America working again.”

Recent data indicate that business and household spending has picked up somewhat, even though the job market remains weak. The economy grew at a 5.7 percent pace in the last three months of 2009 and is on track for continued expansion in 2010. More than half of the late-2009 growth reflected inventory changes, but there were also gains in consumer spending and in business investment in equipment and software. Data for December likewise show moderate growth in household incomes and spending, and this is mirrored in improving consumer confidence measures in January.

On the business side, orders for non-defense capital goods that track well with investment rose further in December and are now up substantially since the summer of 2009. Surveys of senior loan officers indicate that the supply of credit has stabilized as banks are no longer dramatically tightening lending standards. Purchasing managers for both manufacturing and services report that firms see gains in both production and employment going forward. While the U.S. economy appears to have stabilized and moved into recovery, the labor market turnaround is not yet here, as firms have turned to increased hours and temporary workers rather than take on new hires.

SOURCE Retail Industry Leaders Association