Retail jobs will surge as major chains close their stores amidst economic pressure
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According to a new report from Challenger, Gray & Christmas, the number of employment cuts announced in the first five months of 2025 increased by 80% from the same period last year.
Employers announced about 696,000 job cuts up until May. In 2024, that number was just over 385,000. The report shows that employment cuts are just 65,000, matching all totals for 2024.
“Taxes, funding, consumer spending, and overall economic pessimism put a strong pressure on the corporate workforce,” said Andrew Challenger, senior vice president of Challenger and Christmas. In the report. “Companies are reducing spending, slowing employment and sending layoff notifications.”
Craft retailer to close all remaining stores this week
According to the report, the efforts launched by the Ministry of Government Efficiency (DOGE) are the key reasons for job cuts in 2025. This includes federal employment, contractors, and private non-profit layoffs prompted by federal funding cuts and termination agreements.
Elon Musk, a senior White House adviser, walks to the White House after landing in the South Lawn Marines with President Donald Trump. (Photo: Samuel Corum / Getty Images / Getty Images)
The report also cited economic and market conditions as the reason for the increase in layoffs. Additionally, the report states that retail jobs were cut to 76,000 per year, marking the second-highest industry for job cuts behind the federal government, accounting for a whopping 274% increase in 2024.
A “Store Closing” sign displayed outside the Joan Store in Savannah, Georgia on April 12, 2025. (Getty Images/Parker Pulse via Getty Images/Bloomberg)
The closure of stores has contributed to unemployment, with some retailers closing their locations amid economic pressures, while others have filed for bankruptcy and forced them to shut down operations completely.
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Shoppers will leave Macy’s Department Store in Las Vegas, Nevada on Sunday, November 7, 2021. (Bridget Bennett/Bloomberg via Getty Images)
Retailers of well-known department store locations such as JCPenney and Macy’s announced their store closures in 2025. Fashion retailer Forever 21 has announced the closure of hundreds of stores, primarily to close the business due to competition with Shein and Temu. Rite-Aid, Walgreens and Party City have also announced their closures.
Craft retailer Joanne announced in February that it would close all stores following its second bankruptcy filing within a year. Famous for its various fabrics, the store once operated over 800 locations in all remaining stores, following its latest bankruptcy filing, which was closed by the end of May.