Holiday Hiring Freeze: Job Seekers Struggle Amid Retail Uncertainty

This year’s holiday job market is facing unprecedented challenges, as many like Nicholas Strahl, a part-time retail worker, find themselves unable to secure seasonal employment. Despite beginning the search in October and applying to several well-known retailers—CVS, Best Buy, and others—he encountered a stark lack of opportunities. Mr. Strahl describes his situation as part of a broader trend where seasonal hiring is expected to hit its lowest levels since the 2008 recession, with predictions from the National Retail Federation indicating only 265,000 to 365,000 positions available compared to 442,000 last year.

Economic factors such as tariffs, inflation, and a growing reliance on automation are contributing to this decline. According to Allison Shrivastava from the Indeed Hiring Lab, the labour market feels like it’s suffering from “frostbite”, highlighting the increased competition for fewer openings. The government shutdown that delayed labour market data reflects further strains on job seekers, and despite a surprise uptick in job growth in September, the unemployment rate still rose slightly.

Data from Revelio Labs indicates a 22% decrease in job openings within the retail sector, showcasing a significant drop in demand for seasonal workers. Major retailers like Walmart and Target are hesitant to release their hiring plans, opting instead to provide additional hours mainly to existing employees, unlike previous years when they announced seasonal hiring boosts prominently.

Smaller retailers, such as Hobby Works, are also adjusting their hiring timelines, citing economic pressures and a cautious customer base. Tanya Secord, a former temporary employee at Target, has faced disappointment this year in her job search, sending out applications without success amid rising living costs.

The combined effects of economic uncertainty, reduced retailer confidence, and increased applicant competition paint a grim picture for those seeking holiday employment, leading many to reevaluate their spending plans for the season.