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Cnnmoney.comAnalyst says as many as 600,000 more retail jobs could be lost as consumers cut back for good.July 17, 2009: 12:53 PM ET
NEW YORK (CNNMoney.com) -- Retail layoffs could accelerate with a vengeance over the next year as the industry struggles with a newfound frugality among Americans, continuing weakness in the housing market and thousands of auto dealerships slated to close.
"Just as the manufacturing sector has been shedding jobs for many years even as jobs in other sectors have been added, we could see the same thing occur in the retail sector as the frugal future facing the U.S. consumer keeps consumption growth below trend," according to a report this week from Bank of America-Merrill Lynch.
Year-over-year, the industry, which is the third biggest employer after the government and the services sector, has already lost more than 600,000 jobs. And 11% of all jobs lost so far in this recession have been retail related, according to the Labor Department.
While the best case scenario is an estimated 150,000 more store jobs shed over the next year, the report said "the potential exists for up to 600,000 additional retail jobs to be at risk."
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http://money.cnn.com/2009/07/17/news/economy/retail_job_losses/?postversion=2009071712