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Posted On: 12/7/2009

RILA: Despite Improved Job Report, More Progress Needed
In the wake of a job report on Friday that showed the U.S. had only shed 11,000 jobs in November (the smallest decline since the recession began in December 2007), the Retail Industry Leaders Association issued a statement warning that the report showed employeers "face continued challenges," adding that Congress "must act with extreme caution to avoid adding barriers to job creation."

Friday's job report revealed the unemployment rate edged down to 10.0 percent. Retail job losses slowed to 14,500, compared to the more than 44,000 jobs lost in October.

"Today’s unemployment report gives hope to consumers and retailers that a recovery may not be far off. However, it is also a reminder that employers seeking to grow their workforces continue to face challenges," said RILA President Sandy Kennedy. "Policymakers intent on stimulating job growth and the economy must focus on reducing the challenges employers face rather than erecting new barriers to job creation -- which elements of the health care legislation under consideration threaten to do."

The retail industry averaged 33,000 job losses over the past three months, compared to an average of 70,000 over the same period last year.

"Today’s data confirm that the labor market is beginning to heal," said Donald B. Marron, visiting professor at the Georgetown Public Policy Institute and RILA outside economist. "Layoffs have slowed dramatically in recent months, but new hiring remains restrained. Employers are adding hours but not yet jobs, though employment has increased in a few sectors, including temporary help services and department stores. We have a long way to go to get back to the strong economic performance that Americans have come to expect, but the economy and the job market are turning up."

RILA also weighed in on health care reform in its release. While it maintained it is a proponent of healthcare reform that expands coverage and lowers current cost increases, it said "the costly burdens, such as those imposed by the health care reform legislation passed in the U.S. House of Representatives, and the legislation currently under consideration in the U.S. Senate, could undermine economic recovery and cost more jobs for the retail industry, while also pushing insured retail employees from the health care plans they currently have and like."

"Congress simply should not pursue major initiatives that could add significantly to the cost and regulatory burdens faced by the retail industry, thus providing a disincentive to the hiring and business investment critical to ongoing economic recovery efforts," said Kennedy.

RILA members include more than 200 retailers, product manufacturers, and service suppliers, which it says account for more than $1.5 trillion in annual sales, millions of American jobs and operate more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.
 
 


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