Dive Brief:
- While retailers added 280,500 seasonal jobs in November, the number was 5% below the 290,900 from the same month last year, according to an updated report from outplacement firm Challenger, Gray & Christmas. That marks the second-lowest total for November since 2022.
- The firm revised its total added jobs for October to 133,900, up from 124,700 previously, based on nonseasonally adjusted data from the Bureau of Labor Statistics.
- Challenger reiterated its previous estimate that retailers are on pace to hire 8% fewer Q4 seasonal workers this year than in 2023, adding 520,000 new jobs from October through December compared with 564,200 added in the same period of 2023.
Dive Insight:
Retailers added 414,400 seasonal jobs in October and November, down 7% from 444,500 jobs added in the same period last year.
While seasonal retail jobs appear headed for a down year, there was a slight uptick in transportation and warehousing positions, up 11% year over year in November and up 1% year over year for the October and November period, according to the report.
“With the rise of online shopping, we’re seeing a shift in seasonal hiring from traditional retail roles to transportation and warehousing positions,” Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said in a statement. “These jobs often come with higher wages and benefits, making them a more attractive option compared to some retail positions."
For December, the average hiring number is generally around 126,000, according to Colleen Madden, Challenger’s vice president of public relations.
“We'll need to see a revision [plus] jobs added in December of 150,000 to match last season. It is possible, but we don't believe it will happen. It may surpass the 520,000 prediction, however,” Madden said in an email.
Through its tracking, Challenger believes employers have become cautious about hiring, given the current economic environment and uncertainties that generally surround a change in leadership at the national level.
“Job cuts are higher than usual as we end the year, according to our tracking,” Madden said. “Companies are going into an uncertain economic and regulatory environment, so we are seeing caution and cost-cutting from employers.”
The slowdown in hiring comes as sales in the sector rise. In the sectors covered by Retail Dive, retail sales for October and November were up 6.1% and 5% year over year, respectively, according to the U.S. Department of Commerce. Total sales during November were $282 billion.
