US retailers will hire fewer seasonal workers this holiday season that last year due to a softer labour market and tighter consumer spending, according to a report by Challenger, Gray & Christmas.
Retailers are expected to add 520,000 new jobs in the final quarter of 2024, compared to 564,200 in 2023 according to the firm’s analysts of non-seasonally adjusted data from the Bureau of Labour Statistics.
The senior vice president at Challenger, Gray & Christmas – which tracks government data and hiring trends – Andrew Challenger said, “This prediction considers that now, job gains are falling, and consumers have tightened spending … Seasonal employers will add jobs, but need may fluctuate as the season progresses.”
Holiday sales are expected to grow at their slowest pace in six years, according to data from Deloitte last week, as persistent inflation and depleted savings make for more cost-conscious consumers.
Challenger added, “One possibility is retailers will be unable to fill positions… The other is that retailers will not have the need for so many workers, particularly if the economy cools faster and consumers decide to shop less this holiday.”
The forecast for holiday hires is the lowest since 2022 when retailers added 509,300 seasonal jobs, and the second-lowest since 2009 when it was 495,800.
Labour Market
Momentum in the labour market has slowed, with US employment rising less than expected in August according to a Labour Department report.
US-based companies have so far announced 178,350 planned hires for the holiday season, according to the report from Challenger, Gray & Christmas.
The report does not include all retail companies.
Retailer Target said on Monday it would hire 100,000 seasonal workers, in line with the last three years, to increase staffing at its stores and supply chain facilities.
Burlington Stores plans to hire 1,500 full-time and 23,000 part-time seasonal workers, while Bath & Body Works said it would hire 30,000 seasonal workers for the holiday season – the same as in 2023.
2024 holiday hiring is set to fall below 2023 levels.
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