On Thursday, Macy’s said it will be hiring more than 31,500 full and part-time employees for the upcoming holiday season. Though Macy’s seasonal hiring is fewer than last year as the U.S. department store gears up for a busy shopping period. U.S. retailers are expected to hire fewer workers this holiday season than in 2023 due to a softer labor market and tighter consumer spending.
The retailers are heading into the crucial shopping period, according to a report earlier this week by Challenger, Gray & Christmas.
Macy’s lesser job openings
Macy’s announced that it will bring on more than 31,500 new hires for the upcoming holiday season. This is a dip compared to the 38,000 employees it hired in 2023 and the 41,000 in 2022. The U.S. retail sector is taking a cautious approach to seasonal hiring this year due to a softer labor market and tighter consumer spending, as noted by Challenger, Gray & Christmas.
A Deloitte forecast showed U.S. holiday sales are expected to grow at their slowest pace in six years as persistent inflation and depleted savings turn shoppers more frugal ahead of the holiday shopping period.
Holiday season sales generally account for more than half of U.S. retailers’ annual revenue.
Holiday hiring by companies
Parcel delivery firm UPS separately said it plans to hire 125,000 workers for the holiday period, which is more than the 100,000 it had hired last year, to prepare for the busy shipping season.
“The year-over-year increase in our seasonal hiring allows us to be even more confident that we will meet anticipated customer needs,” UPS said in an emailed statement.
With U.S. holiday sales predicted to see their slowest growth in six years, the labor market’s softness and frugal consumer behavior are casting a shadow over the retail sector.
U.S. holiday sales uncertainty
Macy’s hiring plans reflect broader economic uncertainties as retailers prepare for frugal holiday shoppers. Persistent inflation and depleted savings are leading to cautious consumer behavior, affecting spending patterns. This could impact the broader economy, especially given that holiday sales make up a significant portion of annual revenues for many retailers.
Shift in retain strategies
As companies adjust their strategies, both in hiring and marketing, the retail landscape could see significant shifts this season.
