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Tariffs

Retailers Pull Back on Holiday Hiring Amid Economic Uncertainty

Strategic Insights

— 2 min read

Uncertainty over the economy and tariffs is causing U.S. retailers to hesitate on hiring seasonal workers, who typically pack orders, serve shoppers, and build holiday displays. Companies like American Christmas LLC and Radial are cutting back on staff, while others like Amazon Inc. are maintaining their hiring levels. Experts forecast a decline in holiday hiring, with job placement firm Challenger, Gray & Christmas predicting fewer than 500,000 temporary positions this year, down from last year's 543,000.

Key Takeaways:

  • American Christmas LLC, which creates holiday installations, plans to hire 220 temporary workers, down from 300 last year, due to increased tariff costs.
  • Radial, an e-commerce company, plans to hire 6,500 workers, fewer than last year's 7,000, and is waiting to hire for some clients until the last minute.
  • Bath & Body Works plans to hire 32,000 workers, below the 32,700 hired last year.
  • Amazon Inc. intends to hire 250,000 full-, part-time, and seasonal workers for the holiday season, the same level as last year.
  • Challenger, Gray & Christmas forecasts overall holiday hiring to fall under 500,000 positions, a decline from last year's 543,000 and the smallest seasonal gain in 16 years.
  • Companies are increasingly wanting to hire workers closer to when they need them, with Radial hiring two weeks before Thanksgiving weekend instead of four weeks before.
  • Target will offer current workers additional hours and then tap into a separate pool of workers to meet demand.
  • Walmart has been offering its workers extra hours during the holidays for the past few years, with positive feedback from customers and workers.

Statistics:

  • 220: the number of temporary workers American Christmas LLC plans to hire this year, down from 300 last year.
  • US$1.5 million: the expected tariff cost for American Christmas LLC this year, more than double last year's US$600,000.
  • 6,500: the number of workers Radial plans to hire this year, fewer than last year's 7,000.
  • 32,000: the number of workers Bath & Body Works plans to hire this year, below the 32,700 hired last year.
  • 250,000: the number of workers Amazon Inc. plans to hire this year, the same level as last year.
  • 500,000: the predicted number of temporary positions to be hired this holiday season, down from last year's 543,000.
  • 22,000: the number of jobs U.S. employers added in August, down from 79,000 in July and below the 80,000 expected by economists.

Sources:

  • "Retailers' hiring plans mark the first clues to what's in store for the U.S. holiday shopping season," by ANNE D'INNOCENZIO; ASSOCIATED PRESS NEW YORK.
  • "Amazon to hire 250,000 for holiday season," by ANNE D'INNOCENZIO; ASSOCIATED PRESS NEW YORK.
  • "Holiday hiring could fall to 2009 levels," by ANNE D'INNOCENZIO; ASSOCIATED PRESS NEW YORK.
  • "Challenger, Gray & Christmas forecasts overall holiday hiring to fall under 500,000 positions," by ANNE D'INNOCENZIO; ASSOCIATED PRESS NEW YORK.
  • "U.S. employers added just 22,000 jobs in August," by LABOR DEPARTMENT; WASHINGTON, D.C.

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