Published: Tuesday, September 20, 2011
Retailers may be leery about holiday hiring
NEW YORK -- Even though U.S. retailers will likely ring up increased sales this holiday season, their concerns about the economy and consumer sentiment may translate into conservative seasonal hiring -- not-so-encouraging news for the troubled U.S. job market.
Seasonal job gains in the retail sector will be about the same as or possibly lower than a year earlier, when employment grew by 627,600 from October through December, according to the outplacement consulting firm Challenger Gray & Christmas.
Last year's growth marked a 27 percent increase from the 495,800 seasonal workers added in the last quarter of 2009. Holiday hiring fell to a 26-year low in 2008, when retailers brought on just 324,900 seasonal hires during the thick of the global financial meltdown. In comparison, holiday-season hiring in the past 12 years has averaged 655,825, Challenger's data show.
To be sure, the seasonal hiring plan may not see growth in part because retailers are heading into the holiday season with about 160,000 more workers than a year ago, with August retail employment totaling 14.58 million, up from 14.42 million a year earlier, Challenger said, adding that the best opportunities for seasonal job seekers will be at discounters such as Wal-Mart Stores Inc. and Target Corp.
The seasonal-hiring data contrasted with sales gains forecast for this holiday season. November and December sales are forecast to rise by 3 percent to $250.2 billion, according to the International Council of Shopping Centers. While that will mark a slowdown from a 4.1 percent increase in 2010, retail sales during that period in 2008 and 2009 declined, according to the shopping-center trade group.
On a comparable-store basis, which strips out the impact of new and closed stores and usually tracks sales at stores that have been open at least a year, ICSC has forecast a same-store-sales rise of 3.5 percent this holiday season, compared with a 3.8 percent increase in 2010.
Seasonal job gains in the retail sector will be about the same as or possibly lower than a year earlier, when employment grew by 627,600 from October through December, according to the outplacement consulting firm Challenger Gray & Christmas.
Last year's growth marked a 27 percent increase from the 495,800 seasonal workers added in the last quarter of 2009. Holiday hiring fell to a 26-year low in 2008, when retailers brought on just 324,900 seasonal hires during the thick of the global financial meltdown. In comparison, holiday-season hiring in the past 12 years has averaged 655,825, Challenger's data show.
To be sure, the seasonal hiring plan may not see growth in part because retailers are heading into the holiday season with about 160,000 more workers than a year ago, with August retail employment totaling 14.58 million, up from 14.42 million a year earlier, Challenger said, adding that the best opportunities for seasonal job seekers will be at discounters such as Wal-Mart Stores Inc. and Target Corp.
The seasonal-hiring data contrasted with sales gains forecast for this holiday season. November and December sales are forecast to rise by 3 percent to $250.2 billion, according to the International Council of Shopping Centers. While that will mark a slowdown from a 4.1 percent increase in 2010, retail sales during that period in 2008 and 2009 declined, according to the shopping-center trade group.
On a comparable-store basis, which strips out the impact of new and closed stores and usually tracks sales at stores that have been open at least a year, ICSC has forecast a same-store-sales rise of 3.5 percent this holiday season, compared with a 3.8 percent increase in 2010.
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