The signals: While the US Labor Department’s monthly jobs report is delayed until Wednesday, February 11, several indicators suggest the labor market is losing momentum.

• US private-sector employers added just 22,000 jobs in January, down from a downwardly revised 37,000 in December and well below the 45,000 consensus forecast, per ADP.
• Separate data from Challenger, Gray & Christmas shows US-based companies announced only 5,306 new hires in January, the lowest level since the firm began tracking the data in 2009.
• At the same time, employers announced 108,435 job cuts, up 118% YoY, marking the largest January total since 2009 and the highest monthly figure since last October, per Challenger.
• Job openings also fell to 6.54 million in December, down from a downwardly revised 6.93 million in November, per the US Bureau of Labor Statistics, and below all estimates in a Bloomberg economist survey.

Why it matters: The labor market slowdown is becoming more visible, amplified by high-profile layoffs at companies like Amazon, UPS, and Pinterest, alongside a wave of store closures. Amazon is exiting its Amazon Fresh and Amazon Go concepts, GameStop plans to shutter 467 stores, Francesca’s is closing 402 locations, Walgreens is shutting 350 stores, and Allbirds is exiting physical retail altogether.

Taken together, those headlines are shaping sentiment, which is very low from a historical perspective and about 20% below the level in January 2025, per the University of Michigan.

Implications for retailers and brands: The labor market is wobbling just as the economy becomes more clearly bifurcated. While we still expect retail sales to grow 3.5% this year, that growth is unlikely to feel broad-based. University of Michigan data shows sentiment rising among consumers with stock portfolios, while it remains deeply depressed for those without market exposure. The result is an uneven consumer landscape in which higher-income households continue to spend while others pull back, making demand choppy and planning difficult throughout the year.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.