Economy

How retail contributes to the U.S. economy

NRF’s research explains retail’s role in jobs, income, businesses and economic output

November 3, 2026

Retail supported 55 million jobs and $5.3 trillion in U.S. gross domestic product in 2022, according to research prepared by PwC for the National Retail Federation. Those contributions represented 26% of U.S. employment and 20.4% of the nation’s economic output, including activity within retail businesses and the activity they supported elsewhere in the economy.

Retail's Impact

Retail supports more than 1 in 4 American jobs. Learn more.

The findings come from the Economic Contribution of the U.S. Retail Industry report, published in March 2024. The study covers retail trade, including stores and ecommerce, as well as food services and drinking places. Its findings provide a broad view of retail’s economic role, including jobs, income and production supported through retailers’ operations, business purchases and household spending. These are historical economic contribution estimates, not a forecast or a measure of retail’s current-year impact.

How much does retail contribute to U.S. GDP?

Retail businesses generate $2.2 trillion in direct gross domestic product, according to research prepared by PwC for the National Retail Federation. Including the activity supported through their business purchases and household spending, retail’s total contribution reaches $5.3 trillion, or 20.4% of U.S. GDP.

How many U.S. jobs does retail support?

Retail directly provides 32.2 million jobs and supports 55 million jobs overall, according to research prepared by PwC for the National Retail Federation. The total represents more than one in four U.S. jobs and includes full-time, part-time and self-employed positions.

Retail employment extends beyond sales associates and food service workers. The study identifies direct employment in management, business operations, logistics, freight transportation and finance. Retail’s purchases and the household spending it supports also sustain jobs outside the industry. Not everyone whose job is supported by retail works for a retailer.

How much income does retail support?

Retail directly contributes $1.3 trillion to labor income, according to research prepared by PwC for the National Retail Federation. Including income supported in other industries, the total is approximately $3 trillion, or 20% of national labor income.

“Labor income” includes wages, salaries, benefits and income earned by self-employed business owners. It is broader than take-home pay. When households spend income earned directly or indirectly through retail, their purchases support additional jobs, income and production. The study counts this household spending as retail’s “induced” contribution.

How does retail support activity in other industries?

Retail supports other industries through its business purchases and the household spending those activities sustain, according to research prepared by PwC for the National Retail Federation. The study measures retail’s economic contribution through three channels:

Direct: Jobs, labor income and GDP within retail businesses.
Indirect: Activity in other industries supported by retailers’ purchases of operating inputs and capital goods. This excludes merchandise purchased for resale.
Induced: Activity supported when households spend income earned directly or indirectly through retail.

How many retail businesses have fewer than 50 employees?

Retail firms with fewer than 50 employees account for 98.6% of all retail firms, according to research prepared by PwC for the National Retail Federation. That group includes businesses without paid employees and accounts for 40.1% of retail employment. Firms with 50 or more employees account for the remaining 59.9%.

The industry includes nearly 4.6 million establishments. An establishment is an individual business location; a firm can operate one or many establishments. The 98.6% figure describes firms, not locations.

The national figures are only part of the picture. NRF’s state-by-state retail impact data provides information on establishments, employment, income and economic contributions closer to home.

How is retail’s economic contribution different from NRF’s sales forecast?

The National Retail Federation publishes annual and holiday sales forecasts to estimate consumer spending at retailers. The measures answer different questions and cover different businesses.

The contribution study includes automobile dealers, gasoline stations and food services. NRF’s annual retail sales forecast excludes automobile dealers, gasoline stations and restaurants.

Where can readers find ongoing retail economic research?

The contribution study provides a structural view of retail’s economic role using 2022 data. The National Retail Federation publishes separate resources on sales expectations, monthly sales performance, consumer spending plans and economic conditions: