CHELMSFORD Mass. New hirings in the retail sector increased slightly in the first half of 2009, a possible indicator the U.S. economy is stabilizing, according to figures released Tuesday by human resources software firm Kronos Inc.
Called the Kronos Retail Labor Index, the findings track the applications and hiring patterns of 68 retailers that have used Kronos’ hiring systems since 2006, representing about 15 percent of the U.S. consumer retail labor market.
It is the first time that Chelmsford-based Kronos has made its monthly retail labor index public, the company said.
In July, the Kronos Retail Labor Index found that 2.99 hires resulted from every 100 applications, up 4 percent from 2.88 in June and up 9 percent from 2.75 in January, when the retail sector hit a three-year low.
Until January 2009, Kronos said its Retail Labor Index had declined steadily since October 2006, when retailers averaged 7.1 hires for every 100 applications.
Robert Yerex, Kronos’ chief economist, said the 4-percent increase in hirings from June to July alone was a positive sign.
“We believe this stabilization and tentative recovery in the index signals the beginning of stabilization in the overall U.S. economy and will be reflected in other measures of the economy in the coming months,” Yerex said.
During the first seven months of 2009, the retailers received 8.9 million applications, a 12-percent increase over the same period in 2008, and a 33-percent increase over the first seven months of 2007, Kronos said.
Employee retention rates within the sector have increased steadily, however, following a year-over-year decline between late 2006 and 2007.
“As employees find fewer alternative opportunities and are subjected to pressures of a downward-trending economy, they are more likely to voluntarily stay in their current positions,” the report said.
Contact Lisa Jennings at [email protected].
