Retailers added more seasonal workers to their payrolls in November, bringing the hiring numbers back in line with historical trends after a slow October.
The numbers reflect “a good sign that some of the dire concerns about consumers were not realized in November,” said John Challenger, chief executive officer of outplacement consulting firm Challenger, Gray & Christmas Inc. Retailers had been worried that high energy costs and mortgage troubles would have consumers spending less this year.
Stores hired about 424,100 seasonal employees in November, slightly above the 418,200 added in November 2006, according to Challenger. Challenger’s firm bases its data on a Bureau of Labor Statistics report released Friday.
“It’s particularly significant that retailers were slower to bring people on this year. They weren’t going to take a chance,” Challenger said.
October gave retailers the “opportunity to gauge how holiday sales were going,” said Joe Belch, a marketing professor at San Diego State University. You’re “looking at a situation where retailers are in a tough environment. Because it’s a long holiday season, consumers are willing to wait them out,” he added. Shoppers are waiting for discounts, which is affecting profit margins, and with tighter profit margins, retailers are reluctant to hire and take on the added labor cost.
The October 2007 estimate of 71,700 seasonal employees was adjusted upward to 84,900 employees, but this number was still well below the October 2006 figure of 143,300 jobs and the 10-year average of 133,510 jobs (including 2007). The 10-year November average, including this year, is 374,580 jobs.
Still, compared with last year, numbers are down by about 52,500 jobs. Last year saw the highest number of jobs created since 2000 — about 721,000 jobs. What happens in December still remains to be seen, Challenger said.
