As the 2024 holiday season approaches, Americans hoping for seasonal retail jobs may face a tougher job market, as U.S. retailers are expected to hire only 520,000 seasonal workers—a 7.8% drop from 2023, according to a Challenger, Gray & Christmas analysis of Bureau of Labor Statistics data. This marks the second-lowest seasonal hiring since 2009 and the third straight year with fewer than 600,000 holiday hires.
The downturn reflects a broader trend driven by a mix of economic factors. Persistent inflation and high interest rates have led many consumers to focus on essentials, with data from Morning Consult showing a 15% reduction in discretionary spending among U.S. adults from July 2023 to July 2024. With holiday spending projected to increase only 3% from last year, retail sales adjusted for inflation are likely to see minimal growth.
Retailers are also cautious about hiring due to rising labor costs. Many have opted to invest in automation and reskill current staff rather than expand seasonal hires. However, while these strategies can reduce the need for more employees, they could leave some retailers struggling to maintain service levels, potentially impacting customer experience and sales.
While retail job openings are limited, holiday e-commerce is on the rise, with online sales expected to hit $240 billion this season—an 8.4% increase from 2023. This shift means more seasonal opportunities in logistics and delivery, with Amazon planning to hire 250,000 workers and UPS boosting seasonal roles by 25%. For job seekers, these trends suggest that delivery and fulfillment positions may provide the best prospects for holiday employment this year.