Seasonal retail jobs are set to drop to lowest level in 15 years
Retailers are adjusting their holiday staffing plans in anticipation of the upcoming shopping rush. According to the National Retail Federation (NRF), between November 1 and December 31, retail stores are projected to hire fewer seasonal workers compared to last year. The expected number of seasonal hires is between 265,000 and 365,000, down from the 442,000 hired in the previous year, marking the lowest level of seasonal retail hiring in 15 years.
Despite the decrease in seasonal hiring, the NRF predicts that holiday sales will reach a record high, exceeding $1 trillion for the first time with a spending increase of 3.7% to 4.2%. This shift in hiring trends comes amidst a challenging labor market, with businesses hesitant to add new workers and an increase in layoffs reaching levels not seen since 2020.
NRF chief economist Mark Mathews acknowledged the softening labor market but expressed confidence in retailers’ ability to meet consumer demand during the holiday season. He emphasized that despite concerns about inflation and rising prices, consumers prioritize holiday spending and are likely to continue doing so this year.
While retailers are passing on some tariff costs to consumers, NRF senior economist Jack Kleinhenz believes that despite these challenges, consumers remain willing to spend. In response to the reduced seasonal hiring, some retailers have opted to offer additional shifts to existing employees before hiring new seasonal staff.
Target, for example, is encouraging current retail employees to take on extra shifts during the holidays before bringing in new seasonal hires. This approach reflects a trend in the industry where retailers are focusing on retaining existing staff rather than making new hires. NRF economists point out that while there may be fewer seasonal hires this year, there is also a decrease in staff turnover within the retail sector.
