• In May, the United States added more jobs than economists estimate. This is part of a strong recovery.
  • However, the retail sector lost 61,000 jobs in May.
  • This is another example of Americans moving away from spending on goods to services.

Despite the impending fear of economic turmoil, labor market data tells another story: the country is successfully adding jobs.

May, The United States has added 390,000 non-farm payrolls, Decreased from 436,000 profits in April. That’s more than the 325,000 jobs that the economists surveyed by Bloomberg estimated to add to the country.

Recovery is also fairly widespread.

“The report shows that the job market is fending off potential slowdowns,” Glassdoor senior economist Daniel Jao told insiders.

However, almost all major industries created jobs in May, but not in retail. In the retail industry, 60,700 jobs were net losses, most of which came from general stores. This shows how Americans are shifting their spending priorities from high-priced supercenters and instead turning their cash into a great experience.

As you can see in the graph above, leisure and hospitality have led the growth of work. The net increase in leisure and hospitality in May was 84,000, but still below the February 2020 level by 1.3 million. This shows that there are still signs of recovery.

Nick Bunker, director of economic research at Indeed Hiring Lab, said it may take some time for US leisure and hospitality to return to its pre-pandemic state in February 2020. One of the reasons for this may be that the demand is not very high. He added, as it once was.

Americans want to spend on experience when everything costs more

Bunker pointed out that unemployment at large retailers makes sense given the recent disastrous call for profits. The depression may also be due to concerns over overstaffing, he said.

“It’s amazing that the losses appeared very quickly and largely in the data,” Bunker said.

Bunker said a slowdown in transportation and warehousing, which saw a net increase of 47,000 in May, could indicate that it is “seeing the impact of a shift in consumption on the labor market.” Stated.

According to Zhao, personal consumption is changing from commodities to services. “Of course, we should see a recession in retail and a resurgence in industries such as travel and tourism,” he said.

There were already signs that retail was chilling.Number of retail jobs Fall in April 2022.. Large retail store Revenues weaker than expected, retailers Item discounts may be resumed Because they are stuck in excess inventory.

Part of that could be due to American customers acting with their wallets. Against rising costs..When Gas prices hit record highs When Inflation is still close to its 41-year highIt makes sense that Americans are spending less — Especially in fear Burning the savings that consumers already have.

But they are still willing to pay for the summer vacation.holiday The price is also high The high gas price means Some Americans are thinking of making less or shorter trips this summerBut that doesn’t discourage them from looking away for a while. TSA checkpoint travel number Indicates that people are still traveling at speeds close to pre-pandemic levels. According to, spending on commodities is fairly flat. Bureau of Economic AnalysisHowever, spending on services is steadily increasing.

According to Zhao, this is part of a “normalization”, with the economy moving from a pandemic to a post-pandemic era, shifting from rising retail spending.

“It’s not the stage last year when the economy was accelerating dramatically,” Zhao said. “Now we are settling into this new normal, which may be a bit slower in growth, but the slowdown is more normal than a sign that we are about to fall off a cliff.”