Those looking for holiday jobs to raise money to buy presents, cover books for next semester or to pad their skinny savings accounts may be disappointed by holiday hiring.
Seasonal employment is expected to decrease with the country in the throes of the worst recession since the 1980s, weak consumer spending and battered retailers scrambling to slash prices.
Those who do get hired may find the hours are short and that regular staff is stretched to fill the gaps.
Last year, the number of retail jobs increased 4 percent during the holiday season. Experts are unsure whether this season will keep pace with that. The last time holiday hiring dropped was in 2001.
Because labor costs are one of the few expenses retailers can control, they can rein in costs by managing schedules more tightly and chopping part-time schedules, said Kirthi Kalyanam, director of the Retail Management Institute at Santa Clara University.
“The number of people on the floor correlates with how much traffic is coming into the store,” Kalyanam said. “If nobody is coming in and I have product out, what I can save money on is labor.”
Two forces have been in play, Kalyanam said. The economic slowdown has been going on since March, and consumers are planning for a tighter holiday season.
“Usually, (retailers) look at last year’s sales and make adjustments, but this year they are saying ‘forget that’ and are starting from scratch,” he said. “Now they are looking at just three months ago. It’s going to be tough, and the people on the front line are going to face the pain.”
Staffing firm Manpower Inc. surveyed 14,000 employers about hiring for the fourth quarter. Of those, 22 percent expected to increase staff levels between October and December, and 13 percent expected to reduce payroll, including retail. The rest will hold steady or were unsure about their hiring plans.
At J.C. Penney, holiday hiring is nearly done, said Tim Lyons, spokesman for the Plano, Texas-based retailer.
“Our overall hiring is tailored to expected traffic and sales, so we are factoring in our sales expectations,” Lyons said.
J.C. Penney is focusing on staffing during peak-traffic periods. The company typically hires 10 percent to 20 percent more workers for the holidays.
“You may have more staff hours on a Saturday afternoon or a midweek day that we are having a big sale,” he said. “We want to make sure there are enough people, but we may be taking them from another time of day.”
Managing that balance at the Westminster Mall Penney’s is store manager Doug Van Westen, who typically hires nearly 100 people, and this year has hired 80.
“The one thing we are seeing this year is that we have a very good talent pool, above average,” Van Westen said.
If Van Westen needs to fill out the schedule even more, he’ll tap his year-round part-timers to fill the gap.
“We’ll do with what we have now,” he said.
Toys “R” Us will hire about the same amount of holiday help this year, even though consumers are expected to spend less.
“Our stores get so busy, and customer service is so important,” said Jennifer Albano, manager of corporate communication for Toys “R” Us, based in Wayne, N.J.
The company nearly doubles its workforce around the holidays, going from 45,000 companywide to 80,000.
ShopperTrak RCT predicts a 9.9 percent decrease in retail traffic this holiday season because of low consumer confidence, unemployment and worries about the economy.
Minneapolis-based Target’s spokesman, Kyle Thompson, said the company is not making projections about holiday hiring.
“Given the soft sales environment, we are planning accordingly in all of our areas, including seasonal hiring,” he said.
Last year, the company hired 100,000 extra helpers for the holiday season, which averages out to 60 to 70 holiday workers per store location.
At Target’s Northfield Stapleton store, training for new holiday hires is ongoing, said Human Resources Manager Calum White.
Hiring, so far, is “pretty close to last year,” he said.
“Our business needs is what we are looking at,” he said.
Elizabeth Aguilera: 303-954-1372 or eaguilera@denverpost.com
