As the late-year holiday shopping season approaches, US retailers are preparing for a less robust hiring spree than last year, Reuters reported.
According to a report by Challenger, Gray & Christmas, a decrease in consumer spending and a softening labour market are contributing factors to the anticipated decline in seasonal job creation.
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The company reportedly predicts that retailers will add approximately 520,000 new seasonal positions during the final quarter (Q4) of 2024, a significant drop from the 564,200 jobs created in the same period last year.
This forecast is influenced by the recent slowdown in job gains and consumers’ increasingly cautious spending habits.
The holiday sales forecast, as reported by Deloitte, is also less optimistic than in previous years.
Persistent inflation and depleted savings are driving shoppers toward more frugal spending habits, leading to a projected slowdown in holiday sales growth.
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By GlobalDataChallenger noted that retailers might even face challenges in filling all available seasonal positions, particularly if the economy continues to weaken.
Additionally, reduced consumer spending could lead to a decreased demand for seasonal workers.
The anticipated holiday hiring trend marks a significant departure from the previous two years.
According to Reuters, the current forecast represents the lowest level since 2022 and the second-lowest since 2009 when it was 495,800.
The slowdown in the labour market, as evidenced by the recent US employment report, has further contributed to retailers’ cautious approach to hiring.
Despite this, some major retailers have announced their seasonal hiring plans.
Target, for example, intends to hire 100,000 seasonal workers, consistent with previous years.
As the holiday season unfolds, it remains to be seen how retailers will navigate the changing economic landscape and adjust their staffing needs to meet consumer demand.
