Retailers like Amazon are gearing up for the holiday season, but fewer seasonal workers are expected to be hired this year to assist with in-store customers and process online orders in warehouses.
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On Thursday, e-commerce giant Amazon announced plans to hire 250,000 full-time, part-time, and seasonal workers for the critical shopping season. Apply Here. This mirrors announcements from other major retailers in recent weeks. Like last year, Amazon’s hiring goals remain unchanged, as do those of Bath & Body Works and Target, which also plan to onboard roughly 100,000 seasonal workers. Target will offer its current staff the opportunity to pick up additional shifts during the holiday rush.
However, other companies are taking a more reserved approach. Kohl’s has encouraged job seekers to apply but hasn’t disclosed specific hiring targets. Walmart similarly indicated that it’s been hiring throughout the year and will rely on its existing workforce to meet holiday demand.
Some retailers are scaling back their hiring plans. Macy’s, for example, announced it will hire over 31,500 seasonal employees, down from the 38,000 it hired last year. These workers will be placed across its Macy’s, Bloomingdale’s, and Bluemercury stores, as well as its distribution centers.
The holiday season is the busiest period for both online and brick-and-mortar retailers, many of which are already rolling out early discount events to entice consumers. Consulting firm Deloitte forecasts U.S. retail sales will rise between 2.3% and 3.3% during the November to January period, reaching a total of $1.59 trillion. Similarly, EY-Parthenon, the consulting arm of Ernst & Young, predicts a 3% sales increase during the traditional November-December window. However, they warn that inflation-driven price hikes will account for much of this growth, with real sales volume increasing by just 0.5%.
E-commerce, which continues to be a rapidly growing segment, is expected to see an 8.4% jump in sales, reaching a record $240.8 billion, according to data from Adobe, which monitors online transactions.
“Retailers appear confident in a strong holiday season, and their hiring plans reflect this optimism,” said Andy Challenger, senior vice president at Challenger, Gray & Christmas, an outplacement firm. Despite this, U.S. retailers are forecasted to add 520,000 new jobs in the final quarter of the year, down from 564,200 in 2023, according to a report from the same firm. While this is higher than the 509,300 seasonal hires made in 2022, it represents the second-lowest total since 2009.
The overall labor market has slowed since the Federal Reserve raised interest rates several times in 2022 and 2023 to combat inflation. Last month, the Fed lowered its key interest rate for the first time in over four years, signaling a shift toward supporting the job market. Positive job market news emerged this week when the Labor Department reported an unexpected increase in job openings in August.
However, the retail industry may struggle to fill its positions in the coming months due to job demands and wages, according to Challenger.
To attract workers, companies such as Macy’s, JCPenney, Bass Pro Shops, and Cabela’s are hosting nationwide hiring events. Macy’s, in particular, has held events offering on-the-spot interviews in stores and warehouses and plans to hold three more throughout the year. The retailer noted that nearly a third of its recent hires were returning employees.
With the growth in online shopping, UPS plans to hire 125,000 seasonal workers this year, an increase from 100,000 in 2023. Meanwhile, Radial, an e-commerce company supporting brands like Calvin Klein and Express, is planning to hire fewer seasonal workers but will adjust staffing levels based on real-time demand. This approach allows the company to meet customer needs without overcommitting, according to Billy Peterson, a senior vice president at Radial.
On the consumer side, spending has remained resilient, although rising credit card debt and decreasing savings rates may impact future purchasing power. Retail sales saw a slight increase from July to August after a significant jump in the previous month. However, many consumers are becoming more cautious, opting for store brands or seeking out deals to counter high prices.
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Looking ahead, shoppers may face even steeper prices if the ongoing port workers’ strike, which has closed major docks on the U.S. East Coast and Gulf Coast, lasts beyond a month.
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