Holiday Job Market Faces Challenges as Retailers Adjust Plans

The holiday job market is experiencing significant challenges this year, as many retailers are expected to hire fewer seasonal workers than in previous years. Boscov’s, a prominent retail chain, plans to recruit over 1,500 seasonal associates across its 51 locations, including Lehigh Valley and Palmer Park malls. The company has already hosted two job fairs and has another scheduled for November 4, 2023.

Jessica Miller, senior vice president for human resources at Boscov’s, stated that the initial job fairs yielded positive results. “We’ve hired probably about half of the individuals that we will expect to hire,” she noted. Despite Boscov’s normal uptick in seasonal hiring, broader trends indicate that competitors are more cautious this year.

According to Challenger, Gray & Christmas Inc., a firm that assists workers with job searches, hiring has been limited across the retail sector. The organization forecasts that retailers will add fewer than 500,000 positions in the final quarter of the year, marking the smallest seasonal increase since 2009.

Andy Challenger, the firm’s senior vice president, explained that several factors are contributing to this trend. “Seasonal employers are facing a confluence of factors this year: tariffs loom, inflationary pressures linger, and many companies continue to rely on automation and permanent staff instead of large waves of seasonal hires,” he said.

While some companies remain undecided about their holiday staffing strategies, others are adapting. Target plans to offer additional hours to current employees and utilize its on-demand team to fill shifts. The retailer has not disclosed the number of seasonal hires it anticipates, although it operates four locations in Lehigh Valley.

Boscov’s is also planning to provide part-time employees with extra hours during the busy season. Miller emphasized the necessity of additional help as customer traffic increases. “We are looking forward to having extra sets of hands, as we have merchandise coming in and needing to take care of our additional customer traffic that we anticipate,” she explained.

Amid these hiring challenges, the National Retail Federation projects a slight decline in average holiday spending, estimating a 1.3% decrease. Nevertheless, it predicts that consumers will spend an average of $890.40 per person, which would still be the second-highest figure in the 23 years the organization has surveyed holiday spending.

In the logistics sector, companies are also responding to seasonal demands. Geodis, which operates five warehouses in Lehigh Valley, announced plans to hire 195 seasonal workers to meet anticipated demand during the peak season. Nationwide, Geodis intends to add 4,600 seasonal employees, creating positions such as material handlers and equipment operators.

Anthony Jordan, executive vice president and chief operating officer at Geodis in the Americas, emphasized the importance of staffing during peak times. “By expanding our workforce by more than 4,600 seasonal employees, we can ensure we have a flexible and robust team that is ready when demand is at its highest,” he stated.

Similarly, Amazon plans to fill 250,000 positions nationwide, maintaining the same hiring level as last year, which includes over 11,000 roles in Pennsylvania. Seasonal employees at Amazon can earn more than $19 per hour, with available positions posted weekly through December.

Despite these announcements, Challenger predicts a downturn in logistics hiring as companies shift towards automation, flexible schedules, and year-round staffing. Notably, UPS has not disclosed its seasonal hiring plans for this year, reflecting broader trends in the industry.

“Companies have been steadily restructuring their workforces this year, with a sharper focus on efficiency and technology,” Challenger observed. “The traditional seasonal spike in warehousing and shipping jobs is no longer as pronounced, and that shift could be permanent.”

As the holiday season approaches, retailers and logistics companies alike are navigating a complex landscape of consumer demand and operational challenges. The cautious approach to hiring this year may reflect a broader trend towards efficiency in the retail and logistics sectors.