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U.S. retail industry at the end of the year is not looking good—temporary job applications pile up, while companies are cutting back on hiring.
According to the U.S. Retail Association, this shopping season may see nearly 200,000 fewer hires compared to previous years. Market consulting firms are even more pessimistic: predicting an 8% year-over-year decline, marking the lowest seasonal employment level since 2009.
Two main culprits: prices and AI. High inflation causes consumers to tighten their wallets, and retailers are hesitant to expand hiring on a large scale; on the other hand, intelligent systems are beginning to take over roles in warehousing and customer service, naturally reducing the demand for human labor.
The cooling job market and weakening consumer confidence are signals that are not good news for the macroeconomy and liquidity in the crypto market.