The robust upswing in retail jobs in September likely got a boost from early seasonal hiring as retailers prepared for the start of the holiday selling season.
Total nonfarm payroll rose by 254,000 in September, above the 150,000 consensus expectations by economists. September’s jobs data was also more than the revised August report that pushed up nonfarm payroll by another 159,000. Friday’s data from the Bureau of Labor Statistics (BLS) also indicated that the unemployment rate last month fell to 4.1 percent, or 6.8 million, from 4.2 percent in August, although still higher than the year ago jobless rate of 3.8 percent. BLS said most of the employment increases were in food services, health care, government, social assistance and construction.
More from Sourcing Journal
-
Four in 10 Retailers Worry About Inventory Shortages for Holiday 2024
-
With Port Strike on Horizon, Large Retailers In Better Shape For Holiday
For the retail trade, the sector saw the addition of 15,600 jobs last month, far better than the 8,800 jobs lost in August but still below the 18,200 jobs gained a year ago.
Since September 2023, there’s been a rash of retail bankruptcies, which resulted in a high number of store closures and the loss of jobs. Fashion saw the Chapter 11 filings of Rue 21, Eastern Mountain Sports, and Express Inc. The home sector saw even greater shrinkage of its retail store base, which included Conn’s, Bob’s Stores, and Big Lots.
While Eastern Mountain Sports (EMS) secured a buyer for certain assets, including the continued operation of seven core profitable stores, that still left about 17 EMS stores set for closure. And Rue21’s third tour of bankruptcy to effect an orderly wind-down of operations meant the closure of more than 540 stores across strip malls, regional malls and outlet centers. The distressed home sector continue to see more upheaval, with 3,800 jobs lost across 15 states due to the shut down of Conn’s—and its W.S. Badcock banner—and the closure of 244 company-owned doors.
While retailers have also been opening stores, the recent spate of bankruptcies means there are now more store closures than openings. The potential silver lining is that the distressed retailers who were on shaky ground are now already in Chapter 11, leaving possibly fewer left to file in the months ahead.
For seasonal holiday staffing has begun, with Target kicking the season off with the planned hiring of 100,000, the same as in 2023. Macy’s last month said it plans to add more than 31,500 season positions for the holidays. That’s less than the 38,000 hired in 2023 and the 41,000 it recruited in 2022. In 2021, the department store retailer hired 75,000 seasonal workers. However, over the years, Macy’s has closed a number of store locations, and now operates fewer stores. And earlier this month, Amazon said it plans to hire up to 250,000 for full-time, part-time and seasonal placements to help with the holiday gift-giving rush.
Many seasonal hires end their positions starting in late December. The key with the current hiring plans will center on how many hires will be offered full-time, permanent posts once holiday is over.