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Should retailers bring on fewer holiday hires?

January 18, 2016Written by Tom Ryan

Photo: RetailWire

According to a survey from Challenger Gray & Christmas, retailers hired fewer workers over the holidays for the second straight year. The data suggests less of a demand for sales clerks or cashiers and more for workers handling incoming and outgoing online shipments. Overall, seasonal employment in 2015 was down 1.2 percent lower after dropping 4.0 percent in 2014. Retail employment grew by 745,800 workers in the final three months of 2015, down from 755,000 workers added in 2014. "Just as in many other industries, technology is making it possible for retailers to meet higher demand with fewer workers," said John A. Challenger, CEO of Challenger, Gray & Christmas. "The other factor may be the shift in Christmas shopping from brick-and-mortar to click-and-order." He said the continued growth in online selling means that retailers need fewer bodies on the sales floor while more workers are needed by warehouses, fulfillment centers and shipping companies, such as FedEx and UPS. Retailers also appear to moving their hiring timetable up, supporting the trend toward earlier promotions at stores. Retail employment increased by an average of 190,400 in October. From 2010 through 2013, retailers added an average of 145,600 in October. "The earlier hiring gains, coupled with the fact that Black Friday has lost some of its punch in recent years, means that retailers simply do not have to add as many workers in November and December as they used to," said Mr. Challenger.

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