NEW YORK (

TheStreet

) -- Retailers are in the red as investors fear disappointing jobs data will reignite consumers' fears.

The Labor Department said on Friday that 431,000 jobs were added in May, lower than the 500,000 economists expected. The majority of these new jobs were actually temporary hires of consensus workers. The unemployment number edged lower to 9.7%.

This follows another disappointing month for retail sales. On Thursday, companies posted lackluster

May sales data

, with most either missing or just matching Wall Street's estimates.

Both of these issues are weighing on the sector, with the S&P Retail Index tanking 3.3% to 429.67 in midday trading.

Discounters, in particular, are closely tied to unemployment data, as it weighs on their lower-income demographic the most. As a result, shares of

Target

(TGT) - Get Report

are falling 3.2% to $52.73,

Costco

(COST) - Get Report

is off 2.9% to $56.27,

BJ's Wholesale

(BJ) - Get Report

is dropping 2.7% to $37.73 and

99 Cents Only Stores

( NDN) is tumbling 5.6% to $14.07.

On top of the jobs data,

Wal-Mart's

(WMT) - Get Report

annual shareholder meeting

didn't help matters. The retail behemoth has been struggling with declining comparable sales and traffic, yet CEO Mike Duke provided little color on how management plans to regain and retain its customer base. Shares of Wal-Mart are falling 2% to $50.71 in midday trading.

Teen retailers, in particular, struggled the most in May, down 2.1% according to

TheStreet's

tally.

Abercombie & Fitch

(ANF) - Get Report

is tanking 6.3% to $35.20,

Guess

TheStreet Recommends

(GES) - Get Report

is losing 7.3% to $33.82,

Pacific Sunwear of California

(PSUN)

is down 5.4% to $3.48 and

Zumiez

(ZUMZ) - Get Report

is off 4.4% to $16.67.

Within the department store sector, the losses are staggering.

Dillard's

(DDS) - Get Report

is face-planting 9.1% to $25.20,

Macy's

(M) - Get Report

is falling 5.9% to $21.16,

J.C. Penney

(JCP) - Get Report

is sliding 6.2% to $25.40,

Saks

(SKS)

is plummeting 6.4% to $8.56 and

Nordstrom

(JWN) - Get Report

is diving 5.1% to $36.56.

Still, amid the bloodbath, there's one standout:

EBay

(EBAY) - Get Report

is gaining 1.5% to $22.51, although there is no clear, immediate reason for the gain.

-- Reported by Jeanine Poggi in New York.

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