Grocery hiring cools in September

Grocers added a modest 2,700 jobs in September, while hiring at warehouse clubs dipped, according to data released Friday from the U.S. Bureau of Labor Statistics.

Food and beverage stores now employ just over 3.2 million people, about 89,000 more than they did a year ago.  

For grocers, it’s the slowest rate of growth since the industry dropped 8,300 positions in May.

General merchandise stores, including warehouse clubs and supercenters, shed about 1,000 workers in September from the month prior. The segment now employs about 2.26 million workers.

Overall, the retail trade segment lost about 1,100 jobs, according to the BLS, with grocers among the segment’s top performers.

The slowing in grocery hiring could be an indication of the worsening impact of soaring inflation and interest rates on the industry.

Restaurants and bars, meanwhile, had a banner month, adding 60,000 jobs in September to now employ 11.8 million people—about 500,000 jobs short of pre-pandemic levels. Restaurants added about one in every four jobs last month.

Across all sectors, the U.S. economy added 263,000 jobs in September and the unemployment rate fell to 3.5%, returning to its July level.

September’s job growth surpassed economist expectations and will likely spur the U.S. Federal Reserve to continue raising interest rates. It is also likely to put pressure on wage rates, which could worsen inflation.

Of particular interest for grocers? More people appear to be returning to work in their offices. In September, 5.9% of workers did their jobs from home because of the pandemic, down from 6.5% the month before, according to federal statistics. At the outset of the pandemic, as many as 35.4% of those employed worked from home. Food retailers across the country have reported increased visits to their stores as people work from home.