The retail sector is the final link between producers and consumers in the United States. This industry encompasses every physical and digital location where goods are sold directly to the public, from local stores to e-commerce platforms. The health of this sector is tied to consumer spending and broader economic activity, making it one of the largest employment categories in the nation. Analyzing the structure of the retail workforce provides essential context for understanding the American economy.
The Current Size of the Retail Workforce
Retail trade, as defined by the U.S. Bureau of Labor Statistics (BLS) under NAICS codes 44 and 45, employs a substantial portion of the American labor force. This sector is projected to maintain an employment level of approximately 15.5 million people in the coming years, positioning it as one of the country’s largest private-sector employers. This figure strictly counts jobs within establishments primarily engaged in the direct resale of merchandise, such as stores and nonstore retailers. The total for the broader “retail industry” is often cited higher because it frequently includes jobs in the closely related food services and drinking places sector. When combining retail trade with food services, the total number of people directly employed rises significantly, reaching 32.2 million workers as of 2022. This combined total provides a better sense of the overall consumer-facing workforce.
Segmentation of Retail Employment
The total retail workforce is distributed across diverse subsectors, each reflecting a different type of consumer good or service. The concentration of employment varies based on the necessity and frequency of consumer purchases involved.
General Merchandise Stores
These stores, such as department stores, warehouse clubs, and supercenters, offer a wide variety of product lines. They account for one of the largest concentrations of retail employment, providing jobs for millions of workers. Roles primarily involve stocking, cashiering, and management, characterized by high volume and extensive logistical support.
Food and Beverage Stores
Employment in food and beverage stores, including grocery stores, supermarkets, and convenience stores, represents a major segment. These establishments employ a large number of workers due to the high frequency of shopping and the need for constant restocking and perishable goods management. This segment remains relatively stable as it provides necessary daily goods.
Motor Vehicle and Parts Dealers
This subsector includes new and used car dealerships, as well as automotive parts and accessories stores. Employment here tends to be highly specialized, incorporating sales personnel, mechanics, service writers, and financial staff. The workforce size is generally smaller than in food or general merchandise, but the roles often require higher levels of technical skill or specialized sales expertise.
Nonstore Retailers
Nonstore retailers encompass businesses that primarily sell merchandise through electronic shopping, mail-order, and direct sales. This segment, driven largely by the growth of e-commerce, is one of the fastest-growing areas of retail employment. Although jobs in this category are often associated with the digital storefront, the employment figures for nonstore retailers exclude the massive number of workers involved in the separate transportation and warehousing sectors that support their operations.
Health and Personal Care Stores
This subsector includes pharmacies, drug stores, and cosmetic retailers, which often provide both merchandise and limited health services. Employment is supported by an aging population and increasing demand for health-related products. Many jobs here require specialized training, such as pharmacy technicians.
Common Job Roles Within Retail
The retail workforce is structured around high-volume occupations that form the backbone of daily operations. The most numerous positions are customer-facing roles, such as retail salespersons and cashiers, which collectively represent nearly 10 million workers. These are some of the most common occupations in the U.S. economy. A significant portion of the workforce holds non-customer-facing support roles focused on logistics and managing merchandise. These include stock clerks, inventory managers, and order fulfillment specialists. The sector also relies on administrative staff and first-line supervisors who oversee daily operations.
Key Characteristics of the Retail Workforce
Full-Time vs. Part-Time Status
Retail heavily relies on part-time employment, offering flexibility but resulting in less stability for many workers. A significant share of the workforce works fewer than 35 hours per week. Data indicates that 38 percent or more of associates at large retailers are classified as part-time. This high ratio is influenced by the industry’s need to match staffing levels with peak customer traffic, such as evenings, weekends, and holidays.
Age Distribution and Entry-Level Roles
The retail sector serves as a significant entry point into the labor market for young workers. More than half of the workforce falls between the ages of 16 and 34, often correlating with entry-level positions that require minimal prior experience. While the average age of a retail worker is around 40 years old, the industry is a primary source of first jobs and seasonal employment for students and young adults.
Gender and Diversity
The retail workforce exhibits a slight majority of female workers, with women making up approximately 56.5 percent of total employment. This gender distribution varies across different subsectors and management levels. The industry also shows a higher proportion of Black and Hispanic workers compared to their representation in the overall U.S. labor force.
Turnover Rates
The retail sector is known for its high employee mobility and turnover rates. The average annual turnover rate for retail workers can reach approximately 60 percent, with rates for part-time hourly store employees climbing as high as 76 percent. This high rate is often driven by factors such as scheduling instability, limited benefits, and the seasonal nature of some positions.
Economic Impact and Significance
The large size of the retail workforce underscores its influence on the U.S. economy. Retail is a major contributor to the Gross Domestic Product (GDP), with the broader industry contributing $5.3 trillion annually as of 2022. The industry’s employment figures serve as an indicator of consumer confidence and the health of household finances. When retail employment grows, it often signals an increase in demand and spending power. Furthermore, the wages paid to retail workers generate a multiplier effect, supporting jobs in a wide range of other non-retail industries. The retail sector is responsible for supporting 55 million full-time and part-time jobs across the nation.
Future Trends Shaping Retail Employment
The retail workforce is navigating significant change driven by technological advancements and shifting consumer behavior. The expansion of e-commerce continues to alter the types of jobs required, reallocating labor away from traditional sales floors toward supporting roles in logistics, warehousing, and delivery. Automation is also redefining retail work, with technologies like self-checkout kiosks and AI inventory management streamlining routine tasks. While automation may reduce the need for certain low-skill positions, it generates demand for new, higher-skill roles focused on technology maintenance, data analysis, and digital marketing. Retail organizations are increasingly seeking workers with technical proficiency to manage complex omnichannel operations.