Fewer People Seeking Retail Jobs; Hiring Still Not at Pre-Recession Levels
CHELMSFORD, Mass., July 5, 2012 — Kronos Incorporated today announced the July release of the Kronos® Retail Labor Index™, a family of metrics and indices that characterize the current state of the demand and supply sides of the labor market within the U.S. retail sector. The July report includes data for June 2012. The analysis and write-up are prepared by Macroeconomic Advisers LLC, and are available on the Kronos Retail Labor Index website.
- The Kronos Retail Labor Index: (This index is defined as the ratio of hires to applications within a given month, expressed as a percentage. A level of 3.0 percent means that for every 100 applications received, three hires occurred). The Kronos Retail Labor Index edged up to 4.2 percent in June from a reading of 4.1 percent in May. The June reading in the RLI reflected sharp declines in both applications and hiring.
- Retail Hiring Level: The retailers representing 18,362 distributed locations across the U.S. that make up the Kronosdata sample made 33,473 hires (seasonally adjusted) in June 2012, the lowest reading since October 2011. While the June reading was down, the level in May was revised up nearly 11 percent, leaving the trend over the first half of the year still solid as firms hired slightly more than 35,000 workers per month, roughly 5 percent above the average number of hires made all of last year and about 10 percent above the average level in 2010.
- Retail Applications Level: The number of applications received by retailers included in the Kronos sample fell 11.1 percent to 797,852 in June 2012, from a level in May that was revised 10.9 percent higher, all on a seasonally adjusted basis. Applications have fallen in five of the last six months, and the level in June was more than 150,000 below its level one year ago.
- Retail 60-Day Retention Rate: The 60-day retention rate, measured as the number of hires who remain employed for at least the first 60 days divided by the total number of hires made in that month, was unchanged at 81.9 percent (seasonally adjusted) in February 2012. (Note: There is a four-month lag on this indicator as two months are required to measure whether a hire remained employed for 60 days and Kronos customers have two months to return data on separations.)
- Chris Varvares, senior managing director and co-founder, Macroeconomic Advisers
"The Kronos Retail Labor Index edged up one-tenth to 4.2 percent in June, reflecting sharp declines in both hires and applications from levels in May that were revised up substantially. The Retail Labor Index has averaged 4.1 percent so far this year, six-tenths above its level last year, suggesting more favorable hiring conditions for those seeking employment opportunities in the retail sector. This reflects not only reduced competition as the level of applications has fallen significantly over the last year but also some firming in hiring. Even with the drop in June, hiring remains solid compared to last year, up 7.7 percent year-to-date. Overall, we view the recent readings on hires and applications in the Kronos sample as consistent with other labor market data, which point to a still gradual recovery in the retail labor market."
- Organizations that use Kronos hiring solutions employ approximately 15 percent of the U.S. consumer retail labor market, providing Kronos with a unique set of data on employee job applications, hires, and length of service.
- The Kronos Retail Labor Index is released on a monthly basis. Go to www.kronos.com/retail-labor-index to access: the full report; a schedule of upcoming Retail Labor Index release dates; the Retail Labor Index methodology; and downloadable graphics.
- Note to reporters: cite findings as “Kronos Retail Labor Index”.
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About the Kronos Retail Labor Index
The Kronos Retail Labor Index is a family of metrics and indices that analyze the relationship between the demand and the supply sides of the labor market within the U.S. retail sector. It is derived from a single, unified data set, allowing for statistically appropriate comparisons and time series-based trending analysis. Firms that use Kronos hiring solutions employ approximately 15 percent of the U.S. consumer retail labor market, providing Kronos with a unique set of data on employee job applications, hires, and length of service. The Kronos Retail Labor Index provides a distinct and early indicator of the health of the retail sector.
About Kronos Incorporated
Kronos is the global leader in workforce management solutions that enable organizations to control labor costs, minimize compliance risk, and improve workforce productivity. Tens of thousands of organizations in 100 countries — including more than half of the Fortune 1000® — use Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications. To learn how Kronos uniquely delivers complete automation and high-quality information in an easy-to-use solution, visit www.kronos.com.
© 2012 Kronos Incorporated.All rights reserved.Kronos is a registered trademark and Kronos Retail Labor Index is a trademark of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.