2024 Retail Jobs Outlook

Retail Job Outlook for 2024

Ever since the pandemic, the retail industry has had to pivot how they function. This includes leaning on e-commerce, implementing creative advertisements and being strategic about hiring practices. While the retail industry could once quickly hire extra workers to help with the influx of shoppers during busy periods, there is now a consistent retail labor shortage.

According to the National Retail Federation, there were more than 4 million job openings within the last 12 months. This shortage of workers is predicted to continue throughout 2024.

While there are many industries in the United States with labor shortages, the retail industry has been hit hardest. This comes as no surprise when considering that retail is one of the most widespread and utilized industries. Retail businesses feel the sting, leaving managers short-staffed and stressed.

However, there is another side to this shortage, which is an opportunity for retailers to use technology to streamline their hiring practices. This in turn can create opportunities for tech-savvy retail workers who are on the job hunt.

When considering the retail job outlook for 2024, it’s essential to explore the current state of the retail job market and anticipate the trends that will define the industry’s workforce in the coming years.

Current State of the Retail Industry

The retail sector has been a cornerstone of the U.S. economy, providing millions of jobs and serving as a vital link between manufacturers and consumers. Today, retail supports more than one in four U.S. jobs — which is approximately 52 million working Americans. Further, the number of people employed in the retail trade industry in the U.S. increased 2.7% on average over the five years between 2018 and 2023.

Let’s not forget the $3.9 trillion impact retail has on gross domestic product (GDP). With 4.2 million retail establishments in the U.S., there is an ever-present need for workers.

Recent years have witnessed a seismic shift as e-commerce continues to disrupt traditional brick-and-mortar stores. The rise of online shopping, coupled with evolving consumer preferences, has forced the industry to adapt rapidly.

Factors Shaping the Retail Job Market in 2024

Technology Integration

The integration of technology is a driving force behind the evolution of retail jobs in 2024. Automation, artificial intelligence (AI) and data analytics are becoming integral to the industry. In fact, the retail industry ranks second among all industries globally in its spending on AI technologies.

For job seekers, this means that retailers are looking to hire workers with tech-savvy skills to navigate these advancements, such as e-commerce specialists, data analysts and customer relationship management experts.

Economic Conditions

It’s no secret that economic projections are highly discussed and debated. Currently, the 2024 economic projection includes 2% growth, 0 recessions, 2% inflation and 4% unemployment. However, this is not set in stone considering there are many risks that could impact this projection, including a U.S. election and geopolitical tension.

What does this mean for the outlook of retail jobs?

The retail job outlook is closely tied to the broader economic landscape. Economic growth or downturns significantly influence consumer spending habits. A robust economy typically leads to increased consumer confidence and spending, resulting in higher demand for retail workers. Conversely, economic challenges may result in consumer budgeting, impacting the retail workforce.

E-commerce vs. Brick-and-Mortar:

While e-commerce has undoubtedly transformed the retail landscape, traditional brick-and-mortar stores remain a significant part of the industry. These two entities don’t have to be enemies – in fact, the coexistence of these two models leads to a dynamic job market.

E-commerce jobs require a different set of skills, typically logistics and online customer service. Brick-and-mortar stores require skilled sales associates, managers and merchandisers.

Customer Experience and Personalization

The “customer experience” is a buzzword in many industries, and the retail industry is no exception. Consumer expectations are evolving, and retailers are increasingly focusing on enhancing the customer experience. Personalization is a key factor in attracting and retaining customers.

This means that retailers are seeking employees who are adept at providing tailored recommendations and unique in-store experiences. These roles will prioritize customer engagement. Thus, employees must have strong interpersonal skills and the ability to provide personalized services.

Sustainability and Ethical Practices

Speaking of buzzwords across industries, “sustainability” has been a common one, too. Consumers are interested in sustainability, want to see ethical business practices and demand that workers are treated ethically.

Environmental and social issues are constantly brought to light in the age of on-demand media, which means retailers must adopt sustainable sourcing and engage in ethical business practices, including hiring practices.

Challenges for the Retail Job Market in 2024

Inconsistent Work Hours

The rise of the gig economy and part-time employment in the retail sector may contribute to job insecurity among retail employees. Many retailers hire for part-time or temporary positions. This can result in inconsistent work hours and a lack of benefits.

On the other hand, flexibility and part-time options are essential for many employees. Twenty nine percent of retail employees are part-time, which is an option for those who need flexibility in their schedule, like students, teenagers or working parents.

Retailers should build relationships with their workforce to ensure both parties achieve satisfaction with their working hours.

Wage Disparities

This challenge will not come as a surprise to those who have worked in the retail industry. Many retail workers, especially those in entry-level positions, often face low wages that may not align with the cost of living.

In 2024, retail workers will be advocating for fair compensation, better benefits and adequate working conditions. Additional considerations may come from unions and labor movements, and these groups could further impact the retail job outlook.

Adaptation to Technological Skills Requirements

As mentioned, technology will play a huge role in 2024’s retail job outlook. Retail workers who are not adept at using point-of-sale systems, managing online inventory or engaging with customers through digital platforms may face challenges in their role.

This is also an opportunity for retailers to build good relations with their workforce by providing encouragement and continuous training sessions. In many instances, employees or potential new employees can learn the technology skills required on the job.

Balancing Online and In-Store Operations

For retailers operating both online and in brick-and-mortar stores, finding the right balance between the two is challenging. Retail workers must be prepared to support both operations, especially those who are involved in inventory management and fulfillment.

The onus is on both retailers and its employees to provide a cohesive customer experience and ensure smooth logistics.

Job Displacement by Technology

Although technology brings many opportunities for retail workers in 2024, this technology may lead to the displacement of certain jobs, particularly those with routine and repetitive tasks. Automation and AI will continue to integrate into the retail industry, and retail workers who lack the ability to adapt may face challenges in their job.

Opportunities for the Retail Job Market in 2024

Career Advancement Within Retail Organizations

Retailers recognizing the importance of a skilled and motivated workforce are investing in internal training programs, mentorship initiatives and leadership development. This creates a pathway for employees to climb the organizational hierarchy, taking on roles with greater responsibilities and contributing to the overall success of the company.

Thus, retail workers have the chance to advance within their current organizations. In fact, 62% of retail store managers say they reached their current position by “moving up the ranks” in the industry, for example starting as a store associate.

Diverse Career Paths and Skill Development

The evolving nature of the retail industry opens up diverse career paths for individuals. Retail workers can explore opportunities beyond traditional roles, such as sales associates or cashiers.

Within e-commerce, specialized positions such as data analytics and digital marketing are becoming more prominent. Retailers investing in comprehensive training programs provide avenues for skill development, allowing employees to expand their expertise and pursue new career trajectories.

Seventy-one percent of hiring managers say that retail provides its employees foundational skills and experiences that are transferable to other industries and recommend that employees include retail experience on their resumes.

Small Business Opportunities

Consumers continue to voice their support of small businesses. The rise of independent and niche retailers, often fueled by e-commerce platforms like Etsy, provides opportunities for individuals interested in entrepreneurship.

The accessibility of online marketplaces and the ability to establish small businesses allow retail workers to explore entrepreneurial ventures. This could include starting an online store, creating a unique product line or offering specialized services within the retail sector.

Technology Integration and Innovation

The integration of technology opens doors to opportunities for retail workers to engage with cutting-edge solutions. Positions related to the implementation of innovative technologies, such as augmented reality for virtual try-ons, smart inventory management systems and AI-driven customer insights, become integral.

Individuals with a curiosity for technology and a willingness to adapt can contribute significantly to the retail environment.

Remote Work

While certain roles such as cashiers or sales associates will always be an on-the-ground job, remote work practices can be applied to certain areas within the retail industry. Positions related to digital marketing, inventory, data and e-commerce management may offer workers opportunity for remote work.

Additionally, many jobs fall into a hybrid arrangement, where the employee splits time between the retailer’s office and home. This flexibility can enhance work-life balance for employees.

Demand for Retail Workers Across the United States

The demand for retail workers exhibits regional variations across the United States. Urban centers may experience higher demand due to population density and greater retail activity, while rural areas might have a smaller demand. Understanding these geographic trends is crucial for job seekers considering relocation or retailers planning local workforce development initiatives.

Certain job categories within the retail sector will see heightened demand in 2024. Beyond traditional roles like cashiers and sales associates, specialized digital positions in areas like e-commerce will be increasingly sought after. Fulfillment center employees adept at managing online orders and ensuring timely deliveries will also be in high demand.

The skills needed in the retail job market are evolving. In addition to fundamental retail skills, retailers are placing greater emphasis on soft skills such as communication, adaptability and problem-solving. Technological literacy is becoming a prerequisite, as workers need to navigate point-of-sale systems, manage online inventory and engage with customers through various digital channels.

How to Counter the Retail Labor Shortage

Increase Pay

One of the most effective ways retailers can attract employees is by increasing pay. For retailers looking to retain top talent, increasing pay is also an effective strategy. Higher paid employees tend to be more motivated and less stressed.

Between 2014 and 2019, five major national retailers, including Amazon, Walmart, Target, CVS, and Costco, implemented company-wide minimum wages. Announcements from retailers like these have influenced decisions of smaller retailers, too. Some employers have responded to Amazon’s $15 minimum wage by matching it.

Improve Working Conditions

As Gen Z continues to enter the workforce, data shows that they value salary less than every other generation. If given the choice of accepting a better-paying but boring job versus work that was more interesting but didn’t pay as well, Gen Z was fairly evenly split over the choice.

To entice this generation, retailers must improve working conditions and offer a work-life balance. Inclusion is also important to this generation, and they look for employers who represent and welcome diversity in their workforce.

Expand Benefits

While many retailers are not in a position to fully expand benefits, it is critical to understand what workers care about and weave that into the benefits package. This may come in the form of flexible hours, sick leave or childcare.

Retail employees, especially those in younger generations, seek employers that provide non-traditional benefits. One of the benefits they seek is wellness-related benefits, including employee mental health.

The availability of wellness benefits demonstrates the employer’s investment in the well-being of their employees as people. For retailers, it also helps companies establish themselves as an employer of choice.

Offer Training Programs

Many employees are looking to grow with a company. Investing in employees interested in long-term careers is beneficial for a retailer, as it can nurture a talented workforce who can bring new skills to their jobs.

Not only does offering training programs contribute to the company’s growth, but it will also improve employee satisfaction.

Seek Feedback from Employees

Retailers should regularly seek feedback from employees to understand their concerns and areas for improvement. Use this feedback to make adjustments to policies, practices and workplace conditions. By implementing employee feedback, retailers build trust with their workforce.

Targeted Recruitment Strategies for the Retail Industry

Collaborate with Local Institutions

To tap into a larger pool of candidates, retailers should establish partnerships with local colleges, career service centers and training programs. It’s also key to engage with the community by attending career fairs, hosting informational sessions and participating in recruitment events at schools.

Employee Referral Programs

Encourage current employees to refer qualified candidates via an employee referral program. In exchange for a referral, retailers offer incentives such as a bonus. This is a great way to find individuals who align with company culture.

Create Employee Pipelines

Through experiences like internships or co-ops, retailers can create a pipeline for potential employees. This is beneficial as individuals who take part in these opportunities will be already interested and familiar with the retail industry.

Utilize Social Media

Lean in to social media platforms, such as LinkedIn, to recruit potential candidates. Create engaging content that shows open opportunities and company culture. Paid advertisements can be used to target those with niche experience, too.

Attend Networking Events

To find desired employees, networking events can introduce retailers to individuals with vast experience. Industry conferences and meetups are a great way to connect with those in the industry. In the time of online recruiting, these in-person opportunities are still valuable to meet potential employees and discuss available positions.

Concluding Thoughts on the Retail Job Outlook for 2024

According to research by Gfk, nearly 8 out of 10 retail store employees say they are satisfied with their current job and say they are “happy working in retail.” In order to maintain this level of contentment, retailers must provide rewarding jobs and tasks to their employees.

In 2024, the retail job outlook will include balancing the traditional with the transformative. As technology continues to integrate and innovate the industry, consumer behaviors will shift. Retail workers equipped with a diverse skill set, technological acumen and a commitment to enhancing the customer experience will be well-positioned to thrive in this dynamic environment.

As we navigate the future of retail jobs, it is clear that flexibility and adaptability will be key to success.