This November 15th, 2010 Bloomberg article by Timothy Homan discusses the recent retail sales activity for the month of October. The 1.2% increase was much better than expected and was the highest increase in seven months. This is another indication that the holiday season will be better than last year.
It is hopeful that the higher than expected sales can lead to better job numbers in the near future. Increased business activity will lead firms to draw down on their inventories. This could eventually lead to businesses having to restock their inventory and this could lead to a ripple effect as jobs can be created through supply chains and retail establishments.
Typically, the holiday season will lead to more employment with retail stores trying to capitalize on the positive spirit and giving nature of consumers as they celebrate Christmas. It should be noted that many of these jobs are temporary, but retailers will gauge future prospects based on their holiday sales. If holiday sales are better than expected, then this will be an indicator to overall industry that economic conditions are improving. Therefore, they will be more likely to boost investment spending and generate more job creation.
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