Seasonal hiring could remain slow as retailers remain cautious
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October 4, 2009
The nation’s largest electronics retailer just announced that it plans to do more hiring for this year’s holiday season than the last. Best Buy CEO Brian J. Dunn sees consumer demand on the rise for flat-screen TVs and the latest gadgets like netbooks and smartphones. But electronics is just one sector in a vast spectrum of retail goods that includes apparel, home furnishings, luxury items, sporting goods, hardware, automotive, books and DVDs, to name a few. Of the 25 top retail chains, 15 expect holiday hiring to be the same or better than last year, and ten are planning to cut back their hiring by five to 25 percent, according to a survey by The Hay Group, a human resources consulting firm.
Cautious Retailers May Warm Up to Holiday Hiring
Better-than-expected back-to-school sales results may lift the spirits of many retailers who were probably anticipating a bleak holiday season. However, more optimism may not necessarily lead to increased seasonal hiring by cautious retailers, according to the holiday hiring forecast from global outplacement consultancy Challenger, Gray & Christmas, Inc.
"Holiday hiring might improve slightly over last year, but only because 2008 saw the lowest seasonal employment growth in nearly 20 years. With millions of Americans out of work and many more simply cutting back on all discretionary spending, few retailers will take the risk of eating into slim profits with extra workers," says John A. Challenger, chief executive officer of CGCI.
Last year, retail employment grew by just 384,300 from October through December, according to the Bureau of Labor Statistics. That was down nearly 50 percent from 2007, a relatively ‘normal’ year when retailers added 720,800 workers during the fourth quarter.
The 384,300 seasonal workers hired in 2008 comprised the lowest holiday hiring figure since 1989, when retailers added just 380,500 workers. Seasonal retail hiring peaked at 849,400 in 1999.
Hope for Holiday Jobseekers
While there have been some signs that the recession may be over, conditions have remained dismal for retailers. "However, there are some signs of hope," notes Challenger. "After heavy downsizing in the first quarter, job cuts in the retail sector slowed significantly in the second quarter and are on track to be even lower in the third quarter. Additionally, the latest data on retail sales were better than expected."
The Commerce Department reports that retail sales increased by 2.7 percent in August – the biggest monthly gain in three years. Much of the sales increase was due to robust car sales fueled by the government’s cash-for-clunkers program. However, other retail categories saw improvement, including apparel, sporting goods and general merchandise, which were up 2.4, 2.3 and 1.6 percent respectively.
"The stronger sales figures heading into the holidays could boost seasonal hiring above last year’s meager activity," Challenger suggests. "But the hiring surge may come later than normal this year, as many retailers wait to see how holiday sales are going before adding extra workers.
"The good news for retailers is that if there is a need for late hiring, the labor pool is flush with qualified candidates who undoubtedly would be eager to earn some extra holiday spending money and take advantage of employee discounts."
According to Challenger, the best opportunities for seasonal jobseekers will be at large discounters like Target and Wal-Mart, which will be heavily favored by cost-conscious consumers this holiday season. However, jobseekers may have to look beyond the sales clerk positions for available spots.
"The big box stores need extra workers on the floor, but they also need extra workers in their shipping facilities and overnight stocking positions." He also points to "opportunities that exist outside of retail, in areas like catering and with shipping companies such as UPS and FedEx.
Apply Now and Be Prepared to Stand By
Although holiday hiring begins in October, retailers do most of their hiring in November, so "jobseekers should be prepared to be on standby," Challenger advises. In other words, retailers may conduct interviews now and prepare a list of hirable candidates that they will call only when it becomes obvious that more help is needed.
When jobseeking in retail or any other sector, it is important to remember some key interview guidelines: dress appropriately, be on time, show enthusiasm and follow up. According to one hiring manager, the biggest mistake job applicants make when seeking a holiday position is "demanding a specific schedule from prospective employers."
Temporary workers must be prepared to be flexible, whether in terms of hours or type of work. Either can vary as the holiday season progresses.
"Holiday jobseekers should start their search by contacting friends already working in establishments that could need holiday workers. You should also target establishments of which you are a frequent customer. If there are certain retail outlets where you would prefer to work, start going there when business is slow and try to make a connection with a manager or assistant manager. The key," according to Challenger, "is separating yourself from the pile of applicants the store will see between now and Halloween."
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