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Outlook Bleak for Holiday Hiring

Pessimistic retailers plan to slash seasonal jobs

By Rob Quinn, Newser Staff

Posted Sep 23, 2009 1:22 AM CDT

(Newser) – Retail jobs are expected to be in short supply even as the holiday shopping season approaches, the Wall Street Journal reports. Some 40% of retail chains surveyed say they plan to hire fewer workers this year than they did last year when the recession forced many to cut staffing levels. A third of retailers expect a year-to-year drop in sales, and another third predict sales will remain flat.

A surge in retail hiring for the holiday season usually adds some 700,000 temporary jobs to the economy, but that's expected to be down by as much as 100,000 this year just as retailers say they are receiving more applications for seasonal work than usual. Economists warn that retailers' low expectations for holiday sales may become something of a self-fulfilling prophecy, with continued high unemployment damaging consumer confidence —and retail sales.

[Images (2)]

[Quotes (1)]

A holiday shopper passes a display in Kiehl's, a store in the Fourth Street shopping district of Berkeley, Calif., last year. (AP Photo/Dino Vournas)

A shopper looks at holiday decorations at the Northshore Mall in Peabody Mass last year. (AP Photo/Lisa Poole)

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It is what we call the multiplier effect. Consumers are pessimistic about the jobs market, so they are not shopping as robustly, and as firms continue to not hire or lay off workers, consumers get more pessimistic. - Harvard labor economist Lawrence Katz

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COMMENTS

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Showing 2 of 2 comments

Snarfeh

Sep 24, 2009 1:16 AM CDT

I think Christmas should be done away with entirely. If you're into what you believe is Jesus' birthday, celebrate it as he would have celebrated it. Otherwise, it is a disgusting and unnecessary holiday.

SilenceDogood

Sep 23, 2009 9:09 AM CDT

Burn after Reading: We are in deep shit people, buying trinkets for children and friends will be a lesser priority to survival. Retail sales will suffer more; unemployment will increase; the money supply is being diluted beyond comprehension; inflation will begin; bankers cannot loan money due to weak balance sheets; the construction industry is tanking; health care costs are increasing; foreclosures are increasing dramatically; social unrest is increasing; Obama wants to spend 1 trillion on Health care; Obama wants to spend 1 Trillion on cap and trade; the Dems are spending 1 Trillion on Omnibus earmark projects; Where is Ronald Reagan when we need him?

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Money • US

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Outlook Bleak for Holiday Hiring