WASHINGTON — U.S. retail trade employment fell by nearly 19,000 jobs in July, the first decline in the sector in several months, adding to signs of a weakening labor market, the Bureau of Labor Statistics said on Friday.
Retail payrolls decreased by 19,400 on a seasonally adjusted basis, with losses concentrated in warehouse clubs, supercenters and other general merchandise retailers, which shed 21,000 jobs. Gasoline stations and fuel dealers lost 5,000 positions. Those declines were partly offset by a gain of 10,000 jobs at sporting goods, hobby, musical instrument, book and miscellaneous retailers, according to the BLS.
Retail employment had shown little net change over the previous 12 months, underscoring the sector's limited contribution to overall job growth before July. The latest decline came as total U.S. nonfarm payroll employment fell by 23,000, while employment in local government education dropped by 50,000.
The broader labor market report showed that health care continued to add jobs, increasing employment by 22,000 in July, although that was below its average monthly gain of 36,000 over the prior year. Employment was little changed in several other major industries, including manufacturing, construction, wholesale trade, transportation and warehousing, professional and business services, and leisure and hospitality.
The retail decline contributed to an unexpectedly weak overall payroll report. Total nonfarm employment had averaged gains of 34,000 per month over the previous 12 months, according to the BLS. Private-sector employment nevertheless increased by 30,000 in July, with gains in goods-producing industries and several service sectors offsetting losses elsewhere.
The report also showed substantial downward revisions to earlier payroll figures. May employment growth was revised to 63,000 from 129,000, while June's gain was revised to 20,000 from 57,000. The combined revisions reduced reported employment growth for those two months by 103,000. The BLS said the revisions reflected additional reports from businesses and government agencies and recalculated seasonal factors.
The unemployment rate edged down to 4.1% in July from 4.2% in June, while the labor-force participation rate fell to 61.4%. Average hourly earnings for private-sector workers rose by 3.2% from a year earlier.
The BLS is scheduled to publish its preliminary benchmark revision to establishment-survey data on Aug. 28, followed by the August employment report on Sept. 4.
