A recent report from the U.S. Census Bureau reveals significant job losses across several industries dependent on in-person interactions. Between 2017 and 2022, sectors such as electronics stores, women’s clothing retailers, motels, and full-service restaurants experienced steep declines in employment, indicating a shift in consumer behavior exacerbated by the COVID-19 pandemic.
The report, shared on December 30, 2023, highlights that full-service restaurants suffered the largest absolute loss of jobs, with a decline of 309,700 workers. While this number represents a smaller percentage of their overall workforce compared to other sectors, it underscores a broader trend affecting in-person consumer services.
Electronics stores experienced the most drastic percentage drop in employment, with a 40.8 percent reduction, translating to 110,700 fewer jobs. This decline coincided with a revenue drop of $9 billion, or 12 percent, during the same period. Women’s clothing stores were also heavily impacted, seeing a workforce decrease of 133,500 workers, a decline of 38.7 percent. Additionally, children’s and infant’s clothing stores faced a staggering 58.6 percent loss in employment.
Hotels and motels, excluding casino hotels, recorded a total decline of 188,200 jobs, representing an 11.7 percent reduction in workforce. The report attributes much of this decline to pandemic-related travel restrictions, which limited consumer mobility and dining options.
Despite these losses, other sectors thrived, particularly those providing online convenience. For instance, business-to-business electronic markets saw an impressive increase of 380.5 percent in revenue, amounting to an additional $11.8 billion. Electronic shopping and mail-order houses, which include online retailers, reported the largest revenue increase in absolute terms, with a rise of $546.7 billion, equating to a 106 percent gain. Employment in this sector surged by more than 1.2 million workers, a substantial increase of 215.3 percent.
Local messengers and delivery services also witnessed significant growth, with revenue soaring by 314 percent, or an increase of $17.9 billion. This growth is largely driven by consumer demand for fast, contactless delivery of groceries, meals, and other essentials.
The ongoing transition to digital and online services is likely to continue shaping the employment landscape across various industries. As more consumers prefer the convenience of shopping and accessing services from home, businesses reliant on in-person interactions may need to adapt to this changing environment to maintain their workforce and revenue stability.
