Retailers are scaling back seasonal hiring this year due to higher labor costs and consumer uncertainty.
U.S. retailers will hire the lowest number of seasonal workers for the upcoming holiday season since 2008, according to Reuters, which cited a report by global outplacement and executive coaching firm Challenger, Gray & Christmas that was provided exclusively to the news service.
Retailers are expected to add only 410,000 seasonal jobs this season, according to an analysis by the firm of of nonseasonally adjusted data from the Bureau of Labor Statistics. The number is slightly above the 324,900 workers they added during the last quarter of the financial recession of 2008, the report said.
“We have never gone this far into September and not had big hiring predictions from retailers," Andrew Challenger, senior VP at Challenger, Gray & Christmas, told Reuters. "It's really surprising.”
To date, U.S. companies have announced 8,000 planned hires for the holiday season, compared with the 258,201 planned hires announced by this time last year. (The Reuters report was published on Sept. 15). However, Reuters noted, that the Challenger report did not cover all retailers and an updated version will be released.
On September 18, Macy’s announced plans to hire for more than 38,000 full- and part-time seasonal positions this upcoming holiday season.
The report comes amid forecasts that are predicting slower holiday growth this year. According to Deloitte’s annual holiday retail forecast, retail sales will increase 3.5% to 4.6% to total $1.54 to $1.56 trillion during the November to January timeframe in 2023.