Despite recent sales gains, retailers will hire fewer workers this holiday season than last year, workplace consultant Challenger, Gray & Christmas says.
Challenger Gray says retailers may continue to be cautious when it comes to staffing, knowing that the economy is at a fragile stage of the recovery and could turn on a moment’s notice.
Last year, retail payrolls grew by 501,400 workers in October, November and December, according to nonseasonally adjusted data from the federal Bureau of Labor Statistics. That was a 30 percent increase from 2008, when holiday hiring fell to a 22-year low of 384,300 extra holiday helpers.
There will be further gains in seasonal hiring, but it likely not at the levels in 2006 or 2007, when retailers’ holiday payrolls grew by 746,800 and 720,800, respectively, CEO John A. Challenger says.
“Retailers do not want to be caught with too many workers at a time when many of the fundamentals needed for strong consumer spending remain a little shaky,” Challenger said.
Toy retailer Toys R Us plans 600 temporary “express” stores in shopping centers across the country and will need to hire 10,000 workers.
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