2024 Retail Labor Market Outlook
A Forecast of Retail Hiring and Pay
The retail industry has seen many shifts in the last decade, making it one of the most rapidly changing markets for our labor force.
The year 2024 is shaping up to be a transformative year for retail. With new strategies in place to combat inflation, and ongoing adjustments to the way consumers purchase their goods and services, retail will see growth, change, and redefinition of the consumer experience.
Retail is the backbone of our economy, and the transformed shopper experience has had a significant impact on the labor market as a whole. This transformation has resulted in new hiring strategies, the need for experienced and skilled workers, and the need for more real-time data-driven decisions when it comes to hiring and pay.
With access to real-time data and employees skilled in leveraging it, businesses can stay competitive in this volatile market.
The labor market has been on nothing short of a rollercoaster ride since the 2020 pandemic. The pandemic had a significant effect on the way people work, purchase goods and services, find work and get hired.
When it comes to the retail labor market, evolving business conditions are shaping current hiring and pay practices. Data driven decisions, above all, being the most impactful and useful tool when it comes to adjusting hiring and pay practices.
Consumers now prefer the convenience of shopping from the comfort of their homes, driving retailers to enhance their digital platforms and optimize the online shopping experience. The rapid growth of e-commerce has become a dominant force, with online retail sales consistently rising.
Retailers are investing in creating cohesive shopping experiences, with options to make purchases online, in store, and mobile and to return goods both through shipping and in store. E-commerce sales are driving a higher level of recruitment for data savvy employees to navigate this complex selling environment.
These employees are needed to support self service counters, automated fulfillment centers, sophisticated customer sales, and social media and marketing activities. Employees that are data savvy and come up with data driven solutions in real-time are needed and valued in the current retail market.
B. Sustainability and Ethical Considerations
Sustainability and ethical considerations are gaining prominence as consumers become more conscientious about the environmental impact their purchases have.
Ethical considerations have also had an impact, such as fair labor practices, transparency, and a brand’s values and identity. Retailers have had to shift their sustainability practices, and become more transparent about their business practices and values.
C. Data Driven Decisions
Personalization and data-driven decision-making are becoming fundamental �in understanding and meeting consumer expectations. Retailers leverage data analytics to gain insights into customer preferences, tailoring marketing �strategies and product recommendations accordingly.
This personalized approach not only enhances customer satisfaction but also contributes to increased sales and brand loyalty. This is why employees who �have significant knowledge of data, data analytics, data forecasting, etc. are an amazing asset.
Data knowledgeable people who can help further drive decisions are a game changer in the retail market. Whether it’s needed for e-commerce sales, or hiring the right people to get the job done, data is a vital tool to the retail industry.
II. Hiring Trends
The demand for workers remains strong in the current labor market, and will continue throughout 2024. The overall labor market has cooled significantly, and retail has followed suit along with other industries, but there is still a need for workers as the industry adapts to the need for ecommerce, sustainability, and data experts to join their teams.
There is also a need for workers looking to snag a job in sales or customer service, as there has been a significant shortage of both roles in retail since 2020. E-commerce and sales have also been impactful in the search for employees to fill open roles, as data savvy skills are needed for a complex sales environment, and are essential to function as a successful retail business.
Better Benefits
To combat this shortage, retailers have put new strategies in place like automated solutions and �self checkouts. Others are trying to hire and keep employees by offering �higher wages, better benefits, flexible schedules, and sign-on bonuses.
Recruiting
Some retailers have even started working with educational institutions like high schools, community colleges, and universities to recruit part-time workers and cross-training them to fill multiple roles, to pipeline future employees both on the in-store and corporate level.
AI in Retail
AI has made a significant impact in the way recruiters identify potential candidates. HR professionals now use AI tools that allow them to screen resumes and eliminate applicants that do not meet the required criteria. Personality is a major part of filling sales roles in retail, and these tools can also assist in assessing skills and personality types of candidates. This saves a lot of time and valuable resources, so recruiters can find the right candidate for the job in a more timely manner.
III. Pay Trends
In 2023, retailers were struggling to fill key roles at every level. Whether it was e-commerce and sales, management , customer service, or supply chain distribution, finding employees to fill open roles was challenging.
But, 2024 is shaping up to be a better year for retail, with more jobs available, and more opportunities to find qualified candidates.
A. Job Availability
According to WageScape’s real-time labor market data, a total of 1,809,808 retail job listings were added in the last 12 months, and 78,578 were added for the retail market in January 2024 alone.
Nationally, there were 3,559,492 jobs added in the month of January, which has resulted in retail jobs making up 22% of available jobs in the labor market.
B. The Most Wanted Roles
It is clear that the most wanted roles are:
These roles are going to be of great value to all retailers in 2024. There are currently 66,591 open roles for those four positions for the month of January.
C. Pay Increases
Pay in retail roles have stayed consistent in the last 12 months, with an average of $33,280 median advertised pay for valued retail associates such as cashiers, sales associates, store managers, and merchandisers.
IV. Business Considerations
Taking into account how the retail labor market will affect your business in 2024 is crucial.
It is important for all retailers to consider finances, economic fluctuations, investment trends, and access to labor.
A. Financial Considerations
Revenue and profit trends in the retail sector have seen fluctuations, with e-commerce contributing significantly to overall growth.
The shift towards online sales has propelled some retailers with robust online presence to impressive financial performances, while traditional brick-and-mortar establishments have faced challenges in adapting to changing consumer preferences.
B. Economic Fluctuations
Economic fluctuations, such as recessions, can influence consumer spending habits, affecting retailers differently, based on their product and target demographics.
Retailers with a diverse product range and the ability to cater to various consumer segments tend to exhibit more resilience during economic downturns.
C. Investment Trends
Investment trends in technology and infrastructure are indicative of the industry's commitment to staying competitive.
Retailers that strategically allocate resources to technological advancements, such as AI, data analytics, and omnichannel capabilities, are better positioned to navigate evolving consumer expectations.
D. Access to Labor
In retail, having access to labor is imperative. Retailers are changing their whole business model, in part because of significant challenges with labor. The access to labor drives the ability to keep the lights on, not just grow, but to keep a business operating.
As a result, retail businesses are having to innovate both in terms of how they find and keep talent, which includes pay and hiring innovation. The cost of labor has increased and has become increasingly harder to obtain and maintain.
Finding employees with the right skills, experience, and salary expectations make it even more difficult to hire. It is important to stay up to date on emerging skills trends, talent availability, compensation, and analysis of a competitor’s talent practices. All which can be achieved with proper access to labor market data.
Market Outlook
In the next 2-4 years the US retail industry is expected to witness significant shifts and trends that will reshape the landscape and redefine how businesses operate.
The continued growth of e-commerce is anticipated, with online sales expected to continue to grow. Retailers are likely to focus on optimizing their digital platforms, improving user experiences, and investing in technologies that enhance online shopping convenience.
Market Outlook
Sustainability and corporate social responsibility are expected to play an increasingly crucial role in shaping consumer choices. Retailers are likely to prioritize eco-friendly practices, ethical sourcing, and transparent supply chains to align with the growing demand for environmentally conscious and socially responsible products.
The integration of Artificial Intelligence (AI) and data analytics is expected to deepen, with retailers leveraging these technologies to enhance personalization and customer engagement. AI-driven recommendations, chatbots, and predictive analytics are anticipated to become more sophisticated, providing consumers with tailored experiences and efficient services.
The role of labor is changing rapidly, and hiring practices have to be flexible to accommodate changing retail environments. Pay practices have to reflect local, volatile pay environments, which is why a real-time market intelligence tool like WageScape is essential.
Market Outlook
Next-generation labor market data is a must-have for savvy workforce analytics and HR teams.
WageScape is the most trusted source of labor market intelligence and offers the world’s most extensive, real-time labor market data set, tracking over 24 million new jobs each month, across all industries. This includes data on hiring demand, pay levels, access to labor and key skills requirements for over 9.8 million organizations worldwide and counting. Millions of sources consolidated into a single data platform. Updated daily and normalized using patented AI technology to fuel world-class analysis and insights.
With extensive data on the retail market, and its hiring and compensation trends, you can learn even more about the state of this evolving market with WageScape.
Learn more at wagescape.com