Amazon is planning to hire 250,000 employees in the U.S. during the 2024 holiday season, staying consistent with their hiring target from the previous year. This includes full-time, part-time, and seasonal roles in the company’s fulfillment and transportation operations. Sandy Gordon, an Amazon vice president, announced the hiring plan, along with a $1.50 per hour increase in average base pay for U.S. hourly workers, bringing the average rate to over $22 per hour. Seasonal workers will make at least $18 per hour, with full-time seasonal workers gaining access to health-care benefits starting on their first day.
It is noted that seasonal work at Amazon can often lead to long-term employment, with seasonal employees who choose to stay with the company observing an average pay increase of 15% in their first three years of employment. Other major retailers are also ramping up their hiring efforts for the holiday season, with Target announcing plans to hire 100,000 seasonal employees, the same number as in the past two years. Amazon employed 1.54 million people as of June 2024, including corporate, tech, warehouse, and transportation employees, marking a 5% increase from the previous year but still below the peak employment level of over 1.62 million employees two years ago.
Economists are offering a mixed outlook for the upcoming holiday season within the retail sector. Adobe, a company that tracks online spending, projected a significant 8.4% increase in U.S. seasonal online sales, exceeding $240 billion, double the growth rate from the previous year. However, this growth is expected to be driven by heavy discounting, following a period of persistent inflation. Changes in the labor market and the increasing use of robotics are also influencing the holiday season landscape. Andrew Challenger, a senior vice president at Challenger, Gray & Christmas, Inc., noted that the transportation, shipping, and warehousing industries may not see the usual seasonal hiring spikes due to ongoing staffing stabilization and the adoption of automation.
The rise of e-commerce and online shopping is playing a significant role in driving holiday sales, with Adobe’s projection indicating a substantial growth in online spending. Despite this growth, concerns over inflation and heavy discounting strategies may impact retailers’ profit margins. Additionally, changes in the labor market and advancements in technology, such as the increased utilization of automation, are reshaping traditional hiring practices in industries like transportation and warehousing. Retailers are facing a challenging holiday season landscape, with economic uncertainties and shifts in consumer behavior influencing their strategies.
Overall, the retail sector is undergoing significant changes as it prepares for the holiday season. Amazon’s massive hiring plans, alongside other retailers’ efforts to recruit seasonal employees, indicate a push to meet the increased demand expected during this time. The shift towards online shopping, combined with changing consumer preferences and uncertainties in the labor market, are shaping the holiday season landscape. Retailers are adapting to these changes by implementing new strategies, such as automation and discounting, to navigate the challenges and capitalize on the opportunities presented during this critical time of the year.
