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Retail job numbers rise, but their quality declines

Sheena Dixon 26, a former theft-prevention manager at a Target in New York, said her store “used scheduling as a weapon,” shuffling hours so it was difficult to take a second job or make plans. Target says scheduling was done “thoughtfully.”

Associated Press

Sheena Dixon 26, a former theft-prevention manager at a Target in New York, said her store “used scheduling as a weapon,” shuffling hours so it was difficult to take a second job or make plans. Target says scheduling was done “thoughtfully.”

Erin Abell left a job in finance to volunteer for John McCain's presidential campaign in early 2008. She had hoped to return to the industry after the election, but by then Wall Street was on life support, and Abell had to live off credit cards until joining a friend's startup.

So she started working part time at Banana Republic to help cut her debts. Yet Abell was paid less at age 30 than she made in a retail job in her early 20s. She also says she had to promote high-interest credit cards and sometimes work until 1 a.m.

"Management made it very clear they could replace you tomorrow," Abell said.

As the economic recovery gains steam, the retail industry is expected to be one of the strongest for job growth this decade. But the quality of jobs selling clothes, computers and other goods has declined in recent years to the point where few can be classified as careers.

Erratic part-time hours often make a second job impossible and complicate the work-life juggle. Pay has shrunk. And the recession created hordes of overqualified job seekers, leaving existing staff with little power to demand better conditions.

With U.S. unemployment still high at 8.8 percent, many people feel fortunate to land any job. But not all jobs contribute the same to economic growth.

High-paying fields like real estate and finance accounted for 40 percent of the 8.8 million jobs lost from January 2008 to February 2010, but only 14 percent of the jobs created in the year that followed. Lower-paying industries like retail constituted 23 percent of jobs lost but almost half of the recent growth.

This shift "could make it much harder for workers to find family-supporting jobs," said Annette Bernhardt of the National Employment Law Project, who analyzed the data.

Stores are under pressure to trim their expenses, and labor, the biggest expense after inventory, is one of the few costs they can control. In 2006, the median hourly wage for retail salespeople was $9.50, the government says. In 2009, the most recent year for which figures are available, that figure was $9.74 — a 4 percent drop after adjusting for inflation and more than $5 less than the U.S. median for all occupations. For full-time retail workers, the median annual wage was $20,510, well below the federal poverty line for a family of four.

Advances in technology have helped stores optimize workers' schedules, too, so they have more workers on duty during peak sales times without being overstaffed during lulls. But one consequence is inconsistent work schedules for employees.

Sheena Dixon, 26, a former theft-prevention manager at a Target in New York, said her store "used scheduling as a weapon," shuffling hours so it was difficult to take a second job or make personal plans. If the store called on a day off and you declined to come in, your hours were slashed, she said.

Dixon left the company in January. Target spokeswoman Molly Snyder says scheduling was "thoughtfully crafted to provide flexibility for our team members."

By the numbers | Hard to get by

A look at the disparity between the types of jobs lost during the recession and those added since.

40 Percentage of jobs lost from January 2008 to February 2010 in high-paying fields such as finance and real estate.

14 Percentage of those types of jobs that have been added since.

23Percentage of jobs lost from January 2008 to February 2010 in lower-wage fields such as retail.

Nearly 50 Percentage of those types of jobs that have been added since.

$20,510 Median annual wage for full-time retail workers in 2009, well below the poverty line for a family of four.

Retail job numbers rise, but their quality declines 04/06/11 [Last modified: Wednesday, April 6, 2011 7:37pm]
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