Retailers have signaled plans to maintain robust holiday hiring plans despite economic uncertainty and a cooling labor market.
Walmart plans to hire 40,000 seasonal employees, a significant reduction compared to the 150,000 workers it hired in 2021. This reflects the company's conservative stance amid economic uncertainties and inflationary pressures. Despite fewer hires, Walmart remains focused on streamlining its processes and ensuring operational efficiency through automation.
Other retailers are ramping up their holiday hiring. Macy’s has announced it will hire 31,500 seasonal workers for its stores, including Bloomingdale’s and Bluemercury, and distribution centers. Macy's has planned multiple in-person hiring events to meet its seasonal workforce needs. Similarly, Bath & Body Works is looking to add 30,000 seasonal employees across its stores and distribution centers.
Target plans to hire 100,000 seasonal workers for both in-store and supply chain positions. This figure is consistent with its hiring goals from previous years. Starting wages range from $15 to $24 an hour, and the company is offering flexible schedules and benefits to attract workers. Target is also increasing its holiday assortment by 50%, providing a wide range of affordable gifts for customers during its busy holiday season.
On the logistics side, UPS plans to hire 100,000 seasonal workers, using an accelerated hiring process that emphasizes speed. Candidates can go from application to job offer in just 25 minutes, a strategy designed to secure talent quickly in a competitive labor market.
While overall seasonal hiring might see a slight dip compared to previous years—Challenger, Gray & Christmas predicts retailers will add 520,000 seasonal positions in Q4 2024—retailers are optimizing their strategies to balance workforce needs with economic conditions. Many companies are focusing on offering existing employees extra hours and maintaining a leaner seasonal workforce to remain flexible as holiday demand unfolds.
The National Retail Federation has also reported that the retail industry as a whole could see a reduction in holiday sales growth.
Walmart’s decision to hire only 40,000 seasonal workers for the 2024 holiday season, a sharp decline from the 150,000 workers hired in 2021, is influenced by several factors, including economic uncertainty, inflation, and a shift in consumer shopping habits.
The broader economic climate has been a significant factor in Walmart's more conservative seasonal hiring plans. Although consumer spending remains relatively strong, Walmart is cautious about how long this trend will last through the holiday season.
The company is wary of overcommitting to large seasonal workforce hires when there are uncertainties about future consumer demand, particularly as inflation may dampen spending on discretionary items.
Another challenge impacting Walmart’s seasonal hiring push is the tight labor market. Unemployment remains low, around 3.7%, which means there’s fierce competition for hourly workers. Instead of adding large numbers of seasonal staff, the retailer is focusing on retaining its current workforce, offering them extra hours or opportunities to shift into seasonal roles.
This holiday season's hiring outlook reflects a blend of optimism and caution, with companies adjusting their workforce strategies to match both consumer demand and broader economic conditions.
