US retailer holiday hiring set to be lower than last year

Hiring growth was expected to slow down

Employers are preparing for the holiday season, which has always been an important time for consumer spending. Historically, it is also the time of year when employers boost their staffing. However, this year, experts predict that hiring will be slower than in recent years due to factors such as inflation and economic uncertainty. In a survey of retailers, the National Retail Federation (NRF) found that 60% of respondents planned to hire fewer seasonal workers this year compared to last year, and only 10% planned to hire more. The NRF also predicted that overall holiday retail sales would increase by 6% to 8% this year, which is lower than the 8.5% growth rate seen last year.

Factors contributing to slower hiring

There are a number of factors that are contributing to the slowdown in holiday hiring. One factor is inflation, which has been rising at its fastest pace in 40 years. This has put a strain on consumers' budgets, and many are expected to cut back on their holiday spending this year. Another factor is economic uncertainty. The Federal Reserve has been raising interest rates in an effort to combat inflation, and this has led to concerns about a possible recession. This uncertainty is making businesses more cautious about hiring new workers.

Impact on the economy

The slowdown in holiday hiring is likely to have a negative impact on the economy. Seasonal workers play an important role in supporting the retail industry during the holiday season, and their reduced numbers could lead to lower sales and less economic growth. In addition, the slowdown in hiring could lead to higher unemployment rates. Many seasonal workers rely on these jobs to make ends meet, and if they are unable to find work, they could face financial hardship.

Conclusion

The slowdown in holiday hiring is a sign that the economy is facing some challenges. Inflation and economic uncertainty are making businesses more cautious about hiring new workers, and this is likely to have a negative impact on the economy.