Dive Brief:

• Last month the U.S. economy added 223,000 jobs and the unemployment rate fell to 5.4%, the lowest in seven years. Retail employment remained steady, according to the report from the U.S. Labor Department. 

• Wages, though, came below expectations, a factor that has a significant role in dampening retail spending. The government revised its March report to 85,000 jobs added, down from its initially reported 126,000. And March wage gains were also revised lower, up 0.2% in March compared to the initial report of 0.3%.

• Meanwhile, outplacement and employment firm Calendar, Gray & Christmas released a report showing that U.S.-based companies fired or laid off 61,582 workers, mostly in the energy sector and the most since 2012. Oil price decreases led to the job cuts, but the resulting energy savings failed to boost retail spending, according to that report.

Dive Insight:

Economists don’t see much to worry about in the Calendar, Gray & Christmas report because job cuts were isolated mostly in the energy sector, led by oil price drops.

But the failure of those lower energy prices to boost retail spending, plus the government’s report Friday that wages remain stagnant, could be bad news for retailers even as many big players have made moves to raise wages for their lowest paid employees. 

The lower unemployment rate that could hint at an economic turnaround, is one glitter of hope in the report that might pacify retailers, which have been waiting for the improving economy to steady their fortunes.