Retailers are gearing up for the holiday shopping season by ramping up their hiring efforts, with Amazon leading the way by announcing plans to hire 250,000 full, part-time, and seasonal workers. Other major retailers such as Bath & Body Works, Target, and Kohl’s are also looking to add to their workforce, albeit with fewer seasonal employees compared to previous years. Macy’s, on the other hand, plans to scale back its holiday hiring compared to last year, with a focus on adding over 31,500 seasonal positions.
The increase in demand for seasonal workers comes at a time when the U.S. job market is being closely monitored for signs of a slowdown. Despite job openings decreasing since March 2022, retailers are optimistic about the upcoming holiday season, with consulting firms forecasting a 2.3% to 3.3% increase in retail sales between November and January. However, inflation is expected to play a significant role in this growth, with price increases potentially impacting consumer spending, although online sales are projected to continue their upward trend.
Overall, U.S. retailers are expected to add around 520,000 new jobs in the final quarter of the year, a slight decrease from the previous year. The retail industry may face challenges in filling these openings, especially due to the demands of the job and pay. To attract workers, companies like Macy’s, JCPenney, and UPS are holding hiring events and offering incentives to encourage applicants. UPS, for example, plans to hire 125,000 seasonal workers for the holiday rush, an increase from last year.
Consumers have been resilient in their spending habits, but trends such as rising credit card debt and falling savings rates could impact future spending. Retail sales have shown positive signs, with consumers being more cautious with their purchases and seeking out deals. However, the ongoing port workers’ strike on the Eastern seaboard and Gulf coast could potentially lead to even higher prices on products if it persists. Retailers are preparing strategies to meet the demands of holiday shoppers while also adapting to changing consumer behaviors and economic trends.
In conclusion, retailers are gearing up for the holiday season by increasing their hiring efforts, with a focus on addressing the growing demand for online and in-store shopping. Despite challenges in the labor market and potential impacts from inflation, retailers remain optimistic about the upcoming holiday shopping period. By offering incentives, hosting hiring events, and adapting to real-time demand, retailers are aiming to attract and retain seasonal workers to ensure a successful holiday season. Consumers are also expected to play a crucial role in shaping holiday spending trends, with the ongoing economic uncertainties and external factors influencing their purchasing decisions.
