Number Of People Applying For Jobs In Retail Sector Hits Lowest Level Since September 2007
CHELMSFORD, Mass. — Kronos Incorporated today announced the June 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 June report includes data for May 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 rose to 4.1 percent in May 2012 from an April 2012 level that was revised two-tenths lower. The May reading of the Retail Labor Index reflected a moderate decline in hiring outpaced by a sharp drop in applications.
- Retail Hiring Level: The retailers representing 18,362 distributed locations across the U.S. that make up the Kronos data sample made 33,186 hires in May, down four percent from an upwardly revised 34,560 in April. While the recovery in the retail labor market has been gradual and uneven, hiring at retail firms in the Kronos sample this year remains well above that in recent years.
- Retail Applications Level: The number of applications received by retailers included in the Kronos sample fell 14.8 percent to 809,414 in May 2012, more than reversing a sharp 14.6 percent jump in April, all on a seasonally adjusted basis. The level of applications in May was more than 250,000 below its level one year ago, reflecting the uneven downward trend that began in the second half of last year. The number of applications received in May was at the lowest level since September 2007.
- 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, fell to 81.8 percent (seasonally adjusted) in January 2012 from 83.7 percent in December 2011. (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 jumped five-tenths to 4.1 percent in May, the fourth reading of 4.0 percent or higher in the last five months. Compared to readings of about 3.5 percent over the last few years, the higher level signals a slightly more favorable job market for applicants, with more hires occurring per application submitted than in previous years. While much of the recent boost in the Index is accounted for by large declines in applications since the middle of last year, it also reflects a pick-up in hiring since the low levels experienced during and following the Great Recession. The average level of hires so far this year remains well above levels seen over the last three years, pointing to a firming in retail labor market conditions.”
- 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.
SOURCE: Kronos Incorporated