Holiday Season in America: Retailers Scale Back Hiring Amid Economic Slowdown

This holiday season in the United States, employers are taking a more cautious approach to seasonal hiring. n nMajor retail chains that traditionally expand their workforce during the peak shopping period between Thanksgiving and Christmas, such as Macy’s and UPS, have not announced their usual hiring targets. n nMeanwhile, companies like Kroger have explicitly stated they plan to hire fewer temporary workers compared to last year. n nAmong those affected is Taylor Gossman, a 24-year-old from San Francisco who has been seeking full-time employment since graduating from St. Mary’s College in California two years ago. With a bachelor’s degree in communications and marketing experience, she hoped a seasonal role in her field might lead to permanent work. However, after applying to over 30 positions, she received little to no response. n n”It’s really scary, honestly,” Gossman told The New York Times. “I don’t know what’s going to happen or when I’ll land a job.” n nEconomic headwinds are contributing to corporate caution, including the lingering effects of trade tensions, the longest government shutdown in U.S. history, rising tariff costs, and the growing influence of artificial intelligence reshaping certain job functions—making it harder for many Americans to secure employment. n nAccording to a report by Indeed, searches for holiday jobs have surged by 27% compared to the previous year, while available seasonal positions have increased by only 2.7%. n n”This seasonal hiring season will be far more competitive,” said Indeed economist Corey Stahly. n nThe National Retail Federation forecasts the sector will hire between 265,000 and 365,000 seasonal workers this year, down from 442,000 in 2024. Challenger, Gray & Christmas, a labor market research firm, noted that holiday hiring could reach its lowest level in over a decade. n n”The slow pace of announcements so far suggests businesses aren’t betting on a strong seasonal uptick,” said Andy Challenger, senior vice president at the firm. “This year may be more about doing more with less.” n nThe tightening job market reflects a shift that began after the pandemic, when retailers struggled to fill roles and began hiring earlier and retaining staff year-round. n nNow, many companies are prioritizing additional hours for existing employees before opening seasonal roles to new applicants, reducing the number of short-term positions available in November and December. n nFor instance, Target announced 100,000 seasonal hires last year but this year emphasized offering extra shifts to current staff without specifying new hiring numbers. The company also highlighted its reliance on a flexible “on-demand” workforce of about 43,000 part-time employees. n nDuring its recent earnings call, Target warned of a weak holiday season, citing reduced consumer spending on apparel and home goods. n n— news from al-ain news

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