Key Takeaways
- Retail and logistic companies may not hire as many people this holiday season as executives try to parse mixed economic messages.
- This means job seekers will be competing for fewer jobs, with lesser benefits than in years past, experts said.
Looking for a short-term job to help with holiday expenses? Be prepared for some stiff competition.
Landing holiday work is likely to be harder and come with less perks this season, retail and labor experts said, as companies will likely be more conservative about bringing on help as consumer sentiment plunges and executives brace for a potential consumer slowdown.
Seasonal hires could hit a low not seen in 15 years, the National Retail Federation said, forecasting 265,000 to 365,000 such jobs. Meanwhile, more Americans are seeking seasonal gigs—holiday job searches were up 27% year-over-year at the end of September, according to Indeed, a digital job board—and companies know they have the upper hand.
“The power is really in the hands of employers,” said Allison Shrivastava, an economist at Indeed. “They don’t have to offer things like signing bonuses. They don’t really have to compete to raise wages to attract workers.”
Why This News Matters to Consumers
Limited holiday job opportunities is emblematic of the broader job market. Companies are laying off employees and slowing hiring. Unemployed Americans report being out of work for longer periods, though the overall unemployment rate remains relatively low.
Retailers have been less aggressive about publicizing their need for workers—and the lengths they’ll go to bring them on board. Amazon (AMZN) offered up to $3,000 in signing bonuses in 2023. That doesn’t appear to be on the table this year, with temporary jobs proving “really popular” and “often filling up within minutes of being posted,” the company said.
Macy’s (M) didn’t mention referral bonuses while announcing its holiday hiring plans, despite paying up to $500 for help recruiting colleagues in 2023. Catalyst Brands didn’t mention referral bonuses as part of its plan to hire 13,000 workers for six of its brands, including Aéropostale, Eddie Bauer, and JCPenney. In 2023, JCPenney alone was looking to bring on 10,000 people, and using referral bonuses to do so.
Retail and logistics companies are on track to make the fewest holiday hires since Challenger, Gray and Christmas began tallying them in 2012, the staffing firm said. (Some businesses may expect smaller spikes in demand, given that consumers started shopping earlier this year, according to Greg Dyer, chief commercial officer at Randstad USA, a staffing agency.)
The economy is a considerable and challenging factor for retailers, experts said. Total retail spending is growing, despite consumers souring on the economy. Much of this can be credited to the wealthy, who are comfortable paying for international trips and luxury goods because of the strong stock market. Meanwhile, those with more modest incomes have been pulling back on spending.
The so-called K-shaped economy can make staffing tricky. Stores may not need as many employees to help a few people on shopping sprees, unlike when dozens are spending more nominal amounts, Shrivastava said.
Holiday spending growth may slow this year, but sales are expected to crack $1 trillion for the first time, the National Retail Federation said. “It’s a strange position for [employers] to be in,” Shrivastava said.
