A Challenger, Gray & Christmas report points to tariffs and broader economic uncertainty as the catalysts driving a retail workforce contraction.

As the retail job market contracts, the analysis found companies in the sector also have not released hiring plans this year to date — a noteworthy development given that the holiday season is around the corner. Tariffs, inflation and economic uncertainty have prompted retailers to close stores and lay off employees, the report said. 

Many of those same challenges are impacting industries more broadly as well.

“Closings of stores, units, or plants have led to 120,226 layoffs so far this year, while restructuring efforts have resulted in 66,879 job cuts. Bankruptcies accounted for another 35,641 layoffs,” according to the report. 

Indeed, multiple major retailers have shuttered locations amid broader corporate restructurings. Between 2024 and February 2025, retailers closed more than 9,900 stores, but they only opened 7,700 locations during that period, a JLL analysis found. 

While some retailers have issued pink slips to a fraction of their staff, others are shutting down most or all of their storefronts. 

Retail job cuts spike nearly 250% from last year | Retail Dive