Here is the most recent Retail & Consumer job report as of Aug 5, 2025.
Summary: Slowing Growth Amid Sector Shifts
The U.S. private sector added a net total of 37,000 jobs in July 2025, reflecting the slowest pace of hiring since March 2023. While several consumer-facing sectors showed resilience, overall gains were moderated by contraction in healthcare, education, and professional services.
Despite the slowdown, wage growth remains steady, suggesting continued pressure in sectors where skilled labor is scarce. Mid-sized businesses and leisure-related industries led the month’s modest gains, highlighting strong summer travel activity but softening momentum in retail and manufacturing.
Industry-Specific Insights (Retail & Consumer Sectors)
1. Leisure and Hospitality. +38,000 net new jobs
Travel, hotels, and restaurants continued to benefit from peak summer demand. Leisure and hospitality led all industry sectors in job creation. Consumer travel and dining activity remain strong, bolstered by increased domestic tourism and elevated demand for experiences.
2. Trade, Transportation, and Utilities. −6,000 jobs
This category—which includes distribution and logistics—contracted slightly, likely due to inventory corrections, warehouse consolidations, and reduced consumer goods movement. Logistics roles tied to e-commerce showed the greatest pullback.
3. Manufacturing. +2,000 jobs
Flat to modest growth, especially in Consumer Packaged Goods (CPG), where automation and cost-cutting continue to offset hiring. Demand remains steady but hiring is subdued due to supply chain normalization and margin pressures.
4. Retail. +4,000 jobs
Retailers and grocers saw minimal growth. While foot traffic improved in tourist-heavy regions, broader caution in consumer spending, especially around discretionary items, led to sluggish hiring. Grocery segments remained stable.
5. Food Services. +15,000 jobs
Restaurants and bars continued to add jobs in response to peak dining season, but growth is cooling relative to earlier months. Quick service and casual dining led additions, while full-service remains flat due to labor availability and wage pressure.
Job Creation by Business Size
Mid-Sized Businesses (50–249 employees). +51,000 jobs
Strongest contributor to job growth. These firms, especially in hospitality and food services, are flexible enough to meet rising demand but large enough to absorb higher wage costs.
Small Businesses (<50 employees). −5,000 jobs
Small businesses continue to struggle with labor costs and margin pressure. Hiring was negative in sectors like retail and transportation, where smaller operators are being squeezed.
Large Businesses (>500 employees). −7,000 jobs
Large firms are showing signs of retrenchment, with pullbacks in logistics, professional services, and healthcare. Despite financial resources, these companies are navigating cost optimization and cautious demand signals.
Wage Trends
Job-Stayers. +4.6% YoY wage growth
Wage growth for employees staying in their current roles has slowed modestly, reflecting a cooling labor market, particularly in white-collar sectors.
Job-Changers. +7.0% YoY wage growth
Still strong for those switching roles. Gains are highest in hospitality, food service, and logistics, where competition for skilled frontline workers remains elevated.
Regional Employment Notes
- West Region: +37,000 jobs Led all U.S. regions, driven by hospitality, retail, and entertainment jobs in California and Nevada. Continued strength in tourism is driving demand.
- Northeast Region: −15,000 jobs Saw notable declines, especially in professional and business services. Seasonal hiring in leisure did not offset broader sector losses.
Clarifying the Math: Net Growth Context
It’s important to understand that “net” job growth reflects the total gains minus total losses across all sectors.
For instance, while Leisure and Hospitality added 38,000 jobs, the overall private sector added just 37,000, due to declines such as:
- Professional & Business Services: −17,000
- Education & Health Services: −13,000
- Trade, Transportation & Utilities: −6,000
Thus, the “net” growth reflects a dynamic employment landscape, not a uniform expansion.
This article was initiated using AI technology provided by Apple and OpenAI.
