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Retail Challenges in Labor Trends Signal Possible Economic Troubles Ahead
February 4,
2024 by HFBusiness Staff in Business Strategy, Industry 
In an article on Yahoo Finance, Lakshman Achuthan, co-founder of Economic Cycle Research Institute, told Yahoo Finance Live that, "Companies that are hiring or keeping their employees are reducing their hours. Hours worked have declined in a way that you typically see around a recession."
The article discussed the labor market and how those numbers reflected the picture of the US economy. The numbers from January “defied predictions of a cooling labor market…but the headline number doesn’t paint the entire picture.”
“Yes, the labor market grew at a much faster pace last month than forecast, but one key metric— average hours worked— declined, a trend economists say could be worrisome for the economy, since it could indicate changes in hiring trends.”
The article focused especially on the retail sector, which is currently experiencing “a challenging landscape amid a shift in consumer buying habits…Average weekly hours fell to 29.1 in January from 30.2 a year ago, according to the Bureau of Labor Statistics.”
Macy’s (M), Wayfair (W), Levi Strauss (LEVI), and REI are some of the country’s major retailers who have announced job cuts.
The Yahoo Finance article reports that according to a report from global outplacement firm Challenger, Gray & Christmas, global outplacement firm, so far this year, all retailers have cut more than 5,300 jobs. The retail sector is the third highest in layoff announcements in January, after finance and tech.
According to Catherine Lepard, who leads the global retail practice at Heidrick & Struggles, there will likely be “a lot of churn ahead” as more companies will try to “right the(ir) ship.”
The trend in the retail sector with job cuts and also in executive turnover may likely “highlight a noteworthy trend.”
The disruption that has been driven by e-commerce and technology is “widening the gap between winners and losers,” says Yahoo Finance.
"It's a matter of the way the economy is changing, and how it changes so rapidly in the digital world," Morningstar’s David Swartz explained. "The economy has been as tough as it's ever been because of the pandemic… and nobody has magic solutions to the problems."