Retail Employment Down 6,700 in February

Trade group argues against raising the minimum wage, saying it would “hamper economic growth” and drive up unemployment.

March 11, 2014

WASHINGTON – The National Retail Federation estimated that retail employment lost 6,700 jobs in February, which was still up 205,500 year-over-year.

NRF President and CEO Matthew Shay said the news underscores the need to forego adopting new federal mandates that impact retailers.

“While there are signs of modest momentum in the economy, now is not the time to play partisan politics with the recovery by forcing federal mandates on retailers and small business owners like an increase in the minimum wage,” Shay said. “Such policy decisions could hamper economic growth and actually drive up the unemployment rate.”

The NRF said the biggest job losses occurred in electronics and appliance stores, sporting goods stores, and book and music stores. December and January retail employment figures were also revised downward. Despite the news, NRF Chief Economist Jack Kleinhenz sounded an optimistic tone for retailers.

“Retailers continued to rearrange and maximize their payrolls and inventories following the holiday shopping season,” Kleinhenz said. “This decline should be temporary in nature and viewed as a speed bump. We really need to lift the snow screen to adequately measure the economy and jobs situation.

“We remain optimistic for continued economic and employment gains this year and are encouraged by the growth in construction jobs and building material employment last month, which suggests a forthcoming improvement in residential and nonresidential spending along with household and business confidence.”

The Bureau of Labor Statistics Employment Situation Summary said that February total non-farm payroll employment was up by 175,000 with the unemployment rate at 6.7%.

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