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September 9, 2008
Tough economic times and a flat labor market aren't expected to ruin the holiday spirit for retailers this year.
Merchants are still expected to bulk up their payrolls with seasonal workers as they gear up for what typically is the busiest time of the year.
"I think it's going to be a tough year, but it's hard for me to believe there won't be some hiring in retail," said Doug Stites, president of work force development agency Capital Area Michigan Works.
"I don't think the hiring will be as robust because the sales won't be as robust, but I expect they will add on staff."
Several big retailers - among them Target, Sears and Kmart - said they plan to add to their payrolls despite a sluggish economy.
Retail is one of the areas Milwaukee-based employment service Manpower Inc. predicts will grow during the fourth quarter.
Overall, 63 percent of Lansing-area companies it surveyed plan to maintain their current staffing levels for the last three months of the year.
Twenty percent plan to cut workers and 7 percent plan to hire.
"To have 63 percent holding steady, I consider that very good considering how weak the overall economy's been," Stites said.
"I certainly describe the economy as weak. Unemployment is very high, way higher in Michigan than we'd like, and I think that's going to continue."
State, U.S. rates
The national unemployment rate hit a five-year high in August at 6.1 percent. Michigan's jobless rate was 8.5 percent in July, the highest in the nation.
Locally, the tri-county area's rate was 7.7 percent on an unadjusted basis. The state does not adjust local data to account for seasonal factors.
Some major retailers, such as Minneapolis-based Target Corp., aren't planning to let the slow economy affect seasonal hiring.
Target typically hires about 100,000 part- and full-time seasonal workers nationwide between October and December, said Target spokeswoman Heather Christensen.
That amounts to about 65 additional employees per store, but exact numbers vary, she said.
The retailer - with three Lansing-area stores - likely will add a similar number this year, she said. It hired about 105,000 seasonal employees in 2007.
"We're anticipating it's going to remain consistent with our previous years," Christensen said.
"We generally hire based on need. We hire the additional people just to provide guests with a great holiday shopping experience. We want to make sure they're finding what they need."
The company has 350,000 employees and 1,838 stores nationwide. Stites estimated seasonal retail employees such as cashiers earn $7 per hour to $10 per hour.
Part-time work
At Sears Holdings Corp., which owns the Sears and Kmart retail chains, "each store bases its needs on what they're anticipating for that particular store," said Chris Brathwaite, spokesman for the Hoffman Estates, Ill.-based company. He would not discuss hiring numbers.
Sears and Kmart each have one store in the Lansing area. Kmart also has a store in St. Johns.
Kmart stores will begin seasonal hiring at the end of September. Sears will begin adding employees at the end of October. The positions are primarily part-time, Brathwaite said.
In addition to retail, wholesale trade and nondurable goods manufacturing are industries expected to be bright spots on Lansing's hiring landscape in the fourth quarter, Manpower said.
Manpower officials could not be reached for comment.
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