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What happened
According to a report by Challenger, Gray & Christmas, seasonal hiring in the retail sector is expected to reach its lowest level since the 2009 recession, with projections of under 500,000 new positions. This marks an 8% decline from last year and the smallest seasonal gain in 16 years. Factors influencing this trend include ongoing inflation, looming tariffs, and a shift towards automation, which has led many companies to rely on permanent staff rather than seasonal hires. Notably, major retailers like Target and Macy's have not disclosed their hiring plans for the season, contrasting with previous years when they announced specific numbers. While some companies, such as Spirit Halloween and Bath & Body Works, have released their hiring figures, the overall muted response suggests a cautious approach to the upcoming holiday shopping season, which may see reduced consumer spending.
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Key insights
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1
Seasonal Hiring Decline
Retail seasonal hiring is projected to be the lowest since 2009.
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2
Economic Indicators
The report reflects broader economic concerns impacting consumer spending.
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3
Retailer Caution
Major retailers are hesitant to announce hiring plans this season.
Takeaways
The decline in seasonal hiring signals potential challenges for the upcoming holiday shopping season.