Sept 17 (Askume) – U.S. retailers will hire fewer seasonal workers this holiday season than last year as the labor market has softened and the key shopping period has been shortened, according to a report provided exclusively to Askume by Challenger, Gray & Christmas. Consumer spending has also declined.
Retailers are expected to add 520,000 jobs in the final quarter of 2024, compared with 564,200 in 2023, according to the company’s analysis of non-seasonally adjusted data from the US Bureau of Labor Statistics.
“This forecast assumes that job growth is slowing and that consumers are cutting back on their spending,” said Andrew Challenger, senior vice president at Challenger, Gray & Christmas.
Deloitte data last week showed sales growth during the holiday season is expected to be the weakest in six years as shoppers become more frugal in the face of persistent inflation and falling savings.
Challenger said, “One possibility is that retailers won’t be able to fill the positions… Another possibility is that retailers won’t need as many workers, especially if the economy cools rapidly and consumers want to spend more time outdoors this holiday season.”
Holiday hiring forecasts are the lowest since 2022, when retailers added 509,300 seasonal jobs, and the second lowest since 2009, when they added 495,800.
The US Labor Department’s report showed that the labor market momentum has slowed down, and US employment growth in August was lower than expected.
Challenger, Gray & Christmas reports that so far, US companies have announced plans to hire 178,350 workers for the holiday season.
The Challenger Report does not cover all retail companies.
Retailer Target (TGT.N) said on Monday it is planning to increase staffing at its stores and supply chain facilities.It will hire 100,000 seasonal workers as it has done over the past three years.
Burlington Stores (BURL.N) plans to hire 1,500 full-time and 23,000 part-time seasonal workers this holiday season, while Bath & Body Works (BBWI.N) said it plans to hire 30,000 seasonal workers during the holidays. Similar to 2023.
