If you were counting on picking up extra work this Christmas to cover your festive expenses, you might be in for a disappointment. Seasonal hiring across the retail sector has plummeted to levels not seen since the aftermath of the 2008 financial crisis, signalling potential economic trouble ahead.
Retailers Slash Seasonal Staffing
According to the National Retail Federation, holiday hiring will drop by a staggering 40 percent compared to last year. Where retailers added 442,000 seasonal positions in 2024, projections for this festive season suggest only 265,000 to 365,000 new roles will be created.
The staffing firm Challenger, Gray & Christmas confirms this worrying trend, predicting the weakest holiday hiring since 2009. Andy Challenger, the consultancy's senior vice president, attributed the decline to inflationary pressures and companies turning to automation and permanent staff instead of large waves of seasonal hires.
The Double Whammy: Tariffs and Technology
This dramatic pullback reflects how retailers are responding to financial stress from multiple directions. President Donald Trump's sky-high tariffs on foreign products have forced companies to restructure and tighten their budgets significantly.
These tariffs particularly affect countries like China, India, and Brazil, with some rates reaching as high as 50 percent. Given that about 80 percent of all toys and 90 percent of Christmas goods sold in the US are manufactured in China, consumers should brace for significantly higher prices this holiday season.
Meanwhile, the rise of artificial intelligence in the workplace means companies are finding ways to do more with less, reducing their reliance on temporary seasonal staff.
Job Seekers Face Festive Frustration
The timing couldn't be worse for those seeking extra income. Data from jobs site Indeed shows interest in seasonal work was up 27 percent at the end of September compared with last year, and more than 50 percent higher than in 2023.
Economist Allison Shrivastava from Indeed Hiring Lab described the situation as pretty reflective of that frozen, uncertain atmosphere we're in. She noted that while more people want seasonal work, companies aren't hiring as urgently.
Major retailers are demonstrating this cautious approach. Walmart barely plans to hire extra employees, instead offering additional hours to existing staff. Target, while providing benefits to seasonal workers including a 10 percent store discount, has introduced strict new customer service requirements demanding employees smile at shoppers within 10 feet and engage those within 4 feet.
Not all news is bleak however. Some retailers including Amazon, Bath & Body Works, and Kohl's are still adding seasonal staff, with Amazon alone creating around 250,000 positions across its US operations.
Nevertheless, for Britons hoping to supplement their income during the expensive festive period, the message is clear: the traditional Christmas job market has fundamentally changed, and finding that extra work will be more challenging than ever.
