Fashion Retailers Mixed on Hiring as September Employment Gains Disappoint

by · WWD
Shoppers continue to spend despite uncertainty.Brendon Thorne/Getty Images

Fashion retailers muddled along last month as payrolls showed weaker than expected growth across the U.S. economy.

Department stores shed 700 jobs to employ a total of 947,100 in September as apparel specialty stores added 600 positions for a total of 1.15 million, according to the Labor Department’s monthly update on Friday.

U.S. payrolls overall rose by 29,000 — well short of the 90,000 gain economists forecast. And the unemployment rate ticked up to 4.2 percent from 4.1 percent with 7.1 million people on the unemployment rolls. The number of people who have been looking for a job for 27 weeks or more was roughly steady at 1.9 million.

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The generally solid job market has helped consumers spend, although many economists remain surprised by how well shoppers have weathered a series of shocks, including higher gas prices, inflation, political uncertainty and growing fears about AI.

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This week EY-Parthenon chief economist Gregory Daco pored over the latest personal income and spending data and noted in an analysis: “Consumers remain remarkably resilient, even as inflation continues to weigh on household finances. Real consumer spending rose a stronger-than-expected 0.6 percent month-over-month in August, pointing to another quarter of above-trend consumer spending growth. With third-quarter consumption now tracking near 3.4 percent annualized, we foresee real GDP growth around 4.2 percent in third quarter.

“The personal saving rate was revised higher by 1.1 percentage points to 4.6 percent in July and 4.1 percent in August on modestly stronger household income growth,” Daco said. “Still, the income squeeze from higher inflation remains visible with slower income growth and lower savings capping consumer spending capacity.”