This Job Sector Might Be Permanently Harmed by COVID-19
- Author: Mary Singleton
- Posted: 2024-06-30
Many industries are currently affected by COVID-19, but most of them hope to have a recovery once the pandemic ends. However, after months of lockdowns, analysts are starting to notice some concerning trends. COVID-19 is changing the way consumers behave, and some of these alterations might be permanent. Knowing how the job market will change after COVID may provide some insight for those hoping to get a job in the future.
Current Levels of Retail Employment Are Low
For decades, retail has been one of the most reliable sources of employment. Typically, those without much education or pre-existing experience can still find a job assisting in a store. These sorts of jobs tend to be hourly, part-time work, so they provide a lot of flexibility for people. In the future, retail might not be a reliable source of income anymore.
Due to COVID-19, the majority of retail stores are shut down or reporting lower levels of shopping than average. Unlike many other industries, there are few opportunities for their employees to work from home. Furthermore, most retail workers are part-time and hourly, so they do not have protection when layoffs come. This has led to a massive number of retail employees who are out of work. Despite the fact that COVID restrictions are lightening up, the number of US citizens filing for unemployment for the first time continues to rise. Many retail workers are running out of savings and finding it challenging to get a job in their field.
Experts Predict Consumers Are Shifting to Online Shopping
The main reason that this trend seems likely to hold is due to online shopping. In the past several months, many consumers have started to prefer online shopping. Unlike in a store, people can search for exactly what they want, filter products based on criteria like price or color, and compare the price of items at multiple shops to get the best deal. Consumers also appreciate the convenience of having items delivered directly to them instead of having to visit stores in person.
Even after COVID-19 ends, it is likely that many people will still choose online shopping over traditional retail. This will result in less of a need for retail jobs. Keep in mind that certain sectors are more likely to lose jobs permanently than others. The new shopping trends caused by COVID predict that it will mostly be mid-level department stores, high-end luxury retailers, and boutique shops that move to only selling things online. Big box chains like Target and Walmart are still fulfilling the need for same-day purchases of basic items, and home improvement chains like Home Depot still have customer who enjoy shopping in person.
Employers Are Also Promoting the Move to Online Shopping
It is not just consumer demand driving this trend. Many companies are also wanting to make the move to online shopping. There are all sorts of price savings in place for employers. Often, the cost to rent a shop in a busy urban environment are one of the main expenses a business faces. Online shopping allows them to move their base of operations to rural areas where land is cheaper, and they need less space overall. Moving online also lets companies cut back on their number of employees and the amount of inventory they need to keep in stock.
With all these benefits, it is no surprise that the pandemic has been the impetus for many companies to switch to online shopping. Even before COVID-19, there were several major retailers announcing plans to close stores and just run a website instead. With most customers now used to shopping online, this transition is even simpler. And thanks to all the new shipping infrastructure in place, it is increasingly easy for companies to just ship out items directly to customers.
Alternatives for Retail Workers
Keep in mind that this decline in retail jobs is primarily for jobs like being a cashier or sales clerk in a physical shop. Many retail companies may still provide jobs, but these jobs are more likely to be based in call centers, packaging centers, delivery departments, and IT services. Ultimately, people who work in retail need to be aware that employers may be looking for different skill sets in the future. Those who take the time to brush up on skills like driving commercial vehicles or handling software may find it easier to get jobs if traditional physical retail continues to decline.
