Why the Rout in Retail Shouldn't Be a Big Worry for U.S. Economy
- Broad data on employment, sales and job openings remain solid
- E-commerce boom is shaking out some traditional retailers
Shoppers carry bags while walking through the Scottsdale Quarter shopping mall in Scottsdale, Arizona, U.S., on Tuesday, April 11, 2017. The U.S. Census Bureau is scheduled to release retail sales figures on April 14.
Photographer: Caitlin OHara/BloombergA furious pace of store closings and bankruptcies has drummed up fears that U.S. retail is collapsing. Not so fast: Many indicators suggest that retail employment is unlikely to shrivel and the economy will withstand any shock from the sector’s rout.
Granted, the industry’s current woes can’t be ignored. Retail sales account for almost half of consumer spending, which in turn makes up about 70 percent of the economy. Retailers employ 15.9 million people, or about one in every 10 U.S. workers, and positions at certain types of stores may become harder to find.