The retail industry continues to make significant contributions to the American economy in the form of full and part-time jobs. A new report from the National Retail Federation (NRF) and PwC reviews the economic contribution of the U.S. retail industry, examining direct, induced contributions. 

The report finds that as of 2022, there were more than 55 million full and part-time jobs in the retail industry, accounting for 26 percent of employment in the U.S. both directly and indirectly. Broken down, the industry supports 32.2 million direct jobs in the U.S. retail industry, while the industry’s operations and capital investment support 22.8 million indirect and induced jobs across many sectors of the U.S. economy.

Total labor income contribution reached approximately $3 trillion, or 20 percent of national labor income. Overall, the industry contributed more than $5.3 trillion to the nation’s total GDP, more than 20 percent in 2022, according to the report. 

New figures released in the report show there are more than 4.6 million retail businesses in the U.S. as of 2022 including food service and drinking establishments, creating 1 in 4 jobs in America. The retail industry is now the largest private security employee in the U.S. paying out more than 41.3 trillion in wages, salaries, fringe benefits and proprietors’ income.

States with the most retail establishments in 2022, were California, Texas, Florida, New York, Georgia, Pennsylvania, Illinois, Ohio, North Carolina, Michigan, New Jersey, Virginia, Tennessee, Massachusetts and Washington, accounting for 67 percent of the total retail establishments in the country.

In addition to being the state with the most retail establishments, California also has the highest number of retail employees at 6.4 million, while Wyoming has the lowest at 96,630.

The NRF stated that there remains positive movement within the retail industry post-pandemic. Auxiliary factors such as the retirement of Baby Boomers and the increased impact of Millennials will continue to cause consumer behavior to shift, affecting profitability and employment within the retail sector. 

In recent years, a significant decline was seen in the retail sector, both in employment and output, as businesses adjusted to contactless shopping and curbside pickup. The report noted that automation, e-commerce growth and industry consolidation will define how the industry evolves in the future.