There are fewer holiday jobs this year. Employers have more ‘power’

Are you looking for a short-term job to help with vacation expenses? Be prepared for some intense competition.

Getting a holiday job will likely be more difficult and come with fewer perks this season, as companies are likely to be more reticent about offering help as consumer sentiment declines and executives brace for a potential consumer slowdown, retail and labor experts said.

The National Retail Federation said seasonal hiring could reach a low not seen in 15 years, and it expects 265,000 to 365,000 of those jobs. Meanwhile, more Americans are looking for seasonal jobs — holiday job searches rose 27% year over year at the end of September, according to the Digital Jobs Council — and companies know they have the upper hand.

“The power is actually in the hands of employers,” said Alison Shrivastava, an economist at Indeed. “They don’t have to offer things like signing bonuses. They don’t actually have to compete for higher wages to attract workers.”

Retailers have been less aggressive in advertising their needs for workers, and the lengths they will go to to recruit them. Amazon (AMZN) has offered up to $3,000 in signing bonuses in 2023. The company said that doesn’t appear to be on the table this year, with temporary jobs proving to be “extremely popular” and “often filled within minutes of being posted”.

Macy’s (M) did not mention referral bonuses while announcing its holiday hiring plans, despite paying up to $500 to help hire associates in 2023. Catalyst Brands did mention referral bonuses as part of its plan to hire 13,000 workers for six of its brands, including Aéropostale, Eddie Bauer and JCPenney. In 2023, JCPenney alone was looking to attract 10,000 people, and use referral bonuses to do so.

Retail and logistics companies are on track to have the lowest number of holiday hires since Challenger, Gray and Christmas began counting them in 2012, the staffing firm said. (Some companies may expect smaller increases in demand, given that consumers started shopping earlier this year, according to Greg Dyer, chief commercial officer at recruitment agency Randstad USA.)

Experts said that the economy is a big and challenging factor for retailers. Total retail spending is growing, despite consumers’ nervousness about the economy. Much of this can be attributed to the wealthy, who are comfortable paying for international flights and luxury goods due to a strong stock market. Meanwhile, those with more modest incomes have cut back on spending.

The so-called K-shaped economy can make employment difficult. Shrivastava said stores may not need a large number of employees to help a few people on shopping sprees, unlike when dozens spend larger, nominal amounts.

The National Retail Federation said holiday spending growth may slow this year, but sales are expected to reach $1 trillion for the first time. “It’s a strange position to be in [employers] “To be there,” Shrivastava said.