Kronos Retail Labor Index Reaches Highest Level Since August 2008
Kronos Incorporated today announced the November release of the Kronos® Retail Labor Index™, a family of metrics and indices that characterize the current state of the demand and supply sides of the labor market within the U.S. retail sector. The November report includes data for October 2012. The analysis and write-up are prepared by Macroeconomic Advisers LLC, and are available on the Kronos Retail Labor Index website.
- The Kronos Retail Labor Index: (This index is defined as the ratio of hires to applications within a given month, expressed as a percentage. A level of 3.0 percent means that for every 100 applications received, three hires occurred). The Kronos Retail Labor Index rose three-tenths in October 2012 to 4.8 percent, the highest reading since August 2008.
- Retail Hiring Level: The retailers representing 18,837 distributed locations across the U.S. that make up the Kronos data sample made 35,160 hires (seasonally adjusted) in October 2012, up 6.7 percent from the previous month. This was the first increase in five months and put the number of hires in October 5.2 percent above its level one year ago.
- Retail Applications Level: The number of applications received by retailers included in the Kronos sample was little changed in October, edging down to 735,273 from an upwardly revised 736,524 in September 2012. Applications have been moving down from highs reached last year, and the level in October was nearly 200,000 below its level one year ago.
- Retail 60-Day Retention Rate: The 60-day retention rate, measured as the number of hires who remain employed for at least the first 60 days divided by the total number of hires made in that month, ticked up to 81.6 percent in June 2012 from 81.3 percent in May 2012 (all on a seasonally adjusted basis). (Note: There is a four-month lag on this indicator as two months are required to measure whether a hire remained employed for 60 days and Kronos customers have two months to return data on separations).
Chris Varvares, senior managing director and co-founder,
"The Kronos Retail Labor Index rose three-tenths to 4.8 percent in October, the highest reading since August 2008. The increase in the Index this month reflected a solid, 6.7 percent gain in hires while applications were essentially unchanged, in contrast to recent months when sharp declines in applications – not a surge in hiring – were pushing the Index higher. Strong readings on retail sales in September likely boosted retailer confidence, contributing to the pick-up in October hiring. However, until a stronger, sustained recovery in retail spending emerges and retailers become more confident about business prospects, we do not anticipate significant gains in hiring from recent levels."
- Organizations that use Kronos hiring solutions employ approximately 15 percent of the U.S. consumer retail labor market, providing Kronos with a unique set of data on employee job applications, hires, and length of service.
- The Kronos Retail Labor Index is released on a monthly basis. Go to www.kronos.com/retail-labor-index to access: the full report; a schedule of upcoming Retail Labor Index release dates; the Retail Labor Index methodology; and downloadable graphics.
- Note to reporters: cite findings as “Kronos Retail Labor Index”.
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About the Kronos Retail Labor Index
The Kronos Retail Labor Index is a family of metrics and indices that analyze the relationship between the demand and the supply sides of the labor market within the U.S. retail sector. It is derived from a single, unified data set, allowing for statistically appropriate comparisons and time series-based trending analysis. Firms that use Kronos hiring solutions employ approximately 15 percent of the U.S. consumer retail labor market, providing Kronos with a unique set of data on employee job applications, hires, and length of service. The Kronos Retail Labor Index provides a distinct and early indicator of the health of the retail sector.
About Kronos Incorporated
Kronos is the global leader in delivering workforce management solutions in the cloud. Tens of thousands of organizations in more than 100 countries — including more than half of the Fortune 1000® — use Kronos to control labor costs, minimize compliance risk, and improve workforce productivity. Learn more about Kronos industry-specific time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications at www.kronos.com. Kronos: Workforce Innovation That Works™.
© 2012 Kronos Incorporated. All rights reserved. Kronos is a registered trademark and Kronos Retail Labor Index is a trademark of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.
Laura Souza, +1 978-947-4777