Retail’s post-Covid workforce shortage

Articles & Reports
 |  
Jun 2021
 |  
Business of Fashion
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What:  In the US, retailers are under pressure to hire enough of the workers they need to recover from the pandemic


Why it is important: This phenomenon is not limited to the US and IADS members are anticipating these difficulties too.


Now that the US is opening back up, retailers rush to staff up stores and fulfilment centres, but this is not easy: in April, retailers only represented 10% of the net jobs created by US employers, and there are currently 965,000 positions open in retail, compared to 899,000 the months before.


Among the factors for explanation of such a situation, federal subsidies, insufficient childcare options, concerns over Covid-19 safety protocol and pandemic-induced introspections, are mentioned. The problem might be rooted deeper however, and more concerning for a career that is notoriously low-paying, demanding and with limited perspectives (for information, the average salary in retail in the US is USD 13.13 an hour, or USD 27.320 a year):


  • Just like customers, staff favour loyal employers. The retail operators that were quick in laying off are now struggling to attract new talents,
  • Employers need to rethink the compensation package: increase of the minimum wage, welcome bonuses…
  • They also need to think on how to make the position attractive in terms of content, at a moment when omnichannel is redesigning the tasks and needed skills.


Retail’s Post-Covid Labour Shortage