Skip to content

US Job Growth Slows, Warehouse Safety Proposal Opposed, Strong Mother's Day Spending Expected

US Job Growth Slows, Warehouse Safety Proposal Opposed, Strong Mother's Day Spending Expected

Small Business Financial Health & Lifestyle Economic Development Community EAC News

What You Need To Know To Start Your Day

US Job Growth Slows

The nation added a lower-than-expected 175,000 jobs in April as the unemployment rate ticked up to 3.9% from March’s 3.8%. But Department of Labor numbers showed considerable employment gains for industries that generate real estate demand, including healthcare, retail, construction, transportation and warehousing.

Growth from the prior month was led by healthcare at 56,000 positions, followed by social assistance at 31,000, transportation and warehousing at 22,000, and retail at 20,000. The retail gains came as several national chains recently announced store closings, including Rite Aid, 99 Cents Only and Express, and as U.S.-based retailers announced more than 4,000 planned job cuts during April and 16,000 year-to-date, according to outplacement firm Challenger, Gray & Christmas.

Construction added 9,000 jobs, down from the 40,000 added in March and below the 22,000 monthly average for the past year, the government reported.

“It appears that high interest rates are dragging down remodeling, homebuilding, and apartment construction,” Ken Simonson, chief economist for the Associated General Contractors of America trade group, said in a statement. “But firms working on infrastructure, data centers, renewable energy, and manufacturing projects are continuing to add workers and would like to hire more.”

Based on monthly household and company surveys, the Department of Labor said April’s gain of 175,000 nonfarm jobs was lower than the average monthly increase of 242,000 over the prior 12 months. The unemployment rate, while gradually ticking up this year, remains close to historically low levels dating to the late 1960s.

April’s average annual hourly wage growth was 0.2%, well below the 3.9% average for the previous year. The Federal Reserve will be monitoring job and wage growth among other factors in deciding later this year when or if to cut its key lending rates, after deciding this month to leave rates unchanged. 

Warehouse Safety Proposal Opposed

Retail and other business groups raised concerns about a pending proposal in Congress to require large warehouse companies like online retailer Amazon to disclose quota practices to employees and prevent those quotas from interfering with workers’ health and safety.

Democratic Senators Ed Markey of Massachusetts and Tina Smith of Minnesota said they planned to introduce legislation that could ban quotas enforced through 24/7 surveillance of workers or that otherwise could lead to violations of health and safety laws.

Rapid national growth of large warehouses to meet rising demand for same-day e-commerce deliveries has spurred reports of employees working long hours with insufficient restroom or other breaks, increasing the potential for illness or injuries. Several states have already passed laws similar to the proposed federal measure, including New York, California, Washington and Oregon.

“The Warehouse Worker Protection Act would put an end to the most dangerous quotas that plague warehouses,” Markey said in a statement on May 2. The proposal is supported by labor groups including the Teamsters but opposed by some trade groups and retailers including Amazon, the Seattle-based company that maintains it already safeguards workers and discloses performance and attendance standards that are not based on quotas.

Business groups raising objections include the National Association of Wholesaler-Distributors and the National Retail Federation. They said the measure could lead to work delays and price hikes while subverting decades-old federal workplace safety standards.

“Data from the Occupational Safety and Health Administration have consistently shown that warehouse workplaces are safe workplaces,” the retail trade group said in a statement. “NRF member companies are continually investing in better practices, more modern equipment and innovative employee engagement efforts to make these workspaces as safe as possible.” 

Strong Mother’s Day Spending Expected

Consumers plan to spend $33.5 billion this year on Mother’s Day, May 12, splurging on items like flowers, cards and dinners, according to the latest survey by the National Retail Federation and consulting firm Prosper Insights & Analytics.

Researchers said that total is the second-highest in the past several years of tracking in a national survey of more than 8,200 U.S. adults, trailing last year’s record $35.7 billion. The trade group said 84% of surveyed respondents are expected to celebrate the holiday this year, spending on average $254.04 — down from last year’s high of $274.02.

Overall Mother’s Day spending has generally been rising annually since 2020, when the tab reached $26.7 billion. Consumers are projected to spend a total of $7 billion this year on jewelry, $5.9 billion on special outings like dinners or brunches, $3.5 billion on electronics, $3.2 billion on flowers and $1.1 billion on greeting cards.

Online retail sites remained a favored shopping destination for 35% of respondents, followed by department stores at 32%, specialty stores at 29% and local or small businesses at 25%. Respondents were permitted to select multiple retail locations for their planned spending.

Powered By GrowthZone