Retailers tout big hiring plans this holiday season, but workers will be hard to find
Retailers tout big hiring plans this holiday season, but workers will be hard to find · CNBC

In This Article:

  • Roughly 23 percent of retailers weren't able to hire all the temporary workers they wanted for the 2017 holiday season, according to new Korn Ferry report.

  • About 67 percent of retailers are hoping to hire either the same or more seasonal staff this year.

  • Unemployment is at a record low of 3.9 percent in the U.S. and companies are under pressure to raise wages.

While many retailers are already announcing plans to hire more seasonal workers this year, chances are not all of those positions will actually be filled.

The labor market is tighter than it's ever been. Unemployment is at a record low of 3.9 percent in the U.S. and companies are under pressure to raise wages, making it more difficult and expensive to keep talent, according to a new report.

Roughly 23 percent of retailers weren't able to hire all the temporary workers they wanted for the 2017 holiday season, global consulting group Korn Ferry found. That's expected to get even worse this year.

Korn Ferry, one of the largest executive recruiters in the world, surveyed nearly 20 major U.S. retailers representing about 1 million employees and $1.2 billion in sales last month alone.

"I guarantee you this issue has gotten bigger and bigger," said Korn Ferry Senior Partner Craig Rowley. "There are more jobs out there than there are people looking for them ... It's a hustle to find the talent."

Korn Ferry found about 67 percent of retailers are hoping to hire either the same or more seasonal staff this year. But about 63 percent of respondents are also planning to give permanent workers more hours this year, when they aren't able to find people to fill shorter-term roles.

"Retailers are asking their existing employees if they can work more because they're already trained," Rowley said. "This year more than ever we're seeing employers getting workers to work more hours."

As a result, people looking for work are able to be "pickier" when choosing a job, according to on-demand staffing platform Wonolo co-founder A.J. Brustein. Wonolo has job postings on its site that include anonymous worker ratings, salaries and other information for prospective employees.

It's essentially serving as an intermediary between employer and employee.

"There are more jobs that will go unfilled in the fourth quarter than the rest of the year," Brustein said. "That will happen this year for sure. I think that it will be even tougher this year for retailers."

Target TGT said it plans to hire 120,000 workers this holiday season, up 20 percent from a year ago. Macy's M is planning to hire 80,000 people, in line with its initial hiring plans in 2017. And Kohl's KSS recently said it plans to bring on about 90,000 people to work through the New Year, compared with 69,000 people in 2016, the last time the retailer provided a number for its plans.