Amazon has announced plans to hire 250,000 full-time, part-time, and seasonal workers in the U.S. for the upcoming holiday season, as reported on October 3, 2024. All seasonal employees will earn at least $18 per hour and receive benefits from day one, mirroring similar hiring numbers seen in 2023. This move comes as retailers face a cautious approach to seasonal hiring due to concerns about consumer spending during the holiday season. The National Retail Federation's projections indicate slower growth in holiday sales compared to the previous year, prompting many retailers to scale back their hiring plans. For instance, Target is hiring 100,000 seasonal workers, while Macy's plans to bring on over 31,500 seasonal employees. [cb1a4bc0]
Job openings in the U.S. have decreased from 9,358,000 in August 2023 to 8,040,000 in August 2024, reflecting a tightening labor market. Challenger, Gray & Christmas predicts that 520,000 seasonal jobs will be added this holiday season, down from 564,200 in the fourth quarter of 2023. Deloitte forecasts a modest increase in holiday retail sales of 2.3% to 3.3%, with e-commerce expected to grow by 7% to 9%. Salesforce, however, anticipates that holiday sales growth will be below 3%. Notably, 47% of shoppers plan to spend the same as last year, while 40% intend to spend less, indicating a potential shift in consumer behavior. [cb1a4bc0]
In contrast to Amazon's robust hiring plans, the overall retail landscape is showing signs of caution. Retailers are grappling with mixed economic signals, including a resilient labor market and rising wages, but they remain concerned about the impact of returning student loan payments and the Federal Reserve's interest rate hikes. As a result, many retailers are opting to hire fewer workers and focus on protecting their margins. [5aa7b375] [a76ccc2d]
Despite the challenges, the teen labor force participation rate has seen an uptick this summer, reaching levels close to the highest since 2009. This increase is attributed to parents encouraging their children to work again and rising pay rates, with inflation-adjusted median weekly pay for teens growing by 13% from 2019 to 2023. [774113fc]
However, the U.S. is still facing a significant shortage of lifeguards, with over 300,000 pools closed or operating at limited capacity due to this issue. New York City, in particular, has struggled to hire lifeguards despite offering bonuses and raising wages, leading to the closure of sections of beaches and pools. The competition from other industries that do not require the same level of training and responsibility continues to hinder lifeguard recruitment efforts. [774113fc]