Amazon Keeps Holiday Hiring Flat Amid Spending Uncertainty

Amazon plans to hire 250,000 workers for the upcoming holiday season, according to a Thursday (Oct. 3) press release.

The figure is in keeping with last year’s hiring levels and comes as retailers are preparing for a shopping season that could be marked by consumer hesitancy.

Many of the new hires will likely be familiar faces, as about one-third of the people who take holiday work with the company come back in subsequent years, the release said.

Another major retailer, Target, announced in September that it is keeping its holiday hiring levels the same as in 2023, with plans to take on 100,000 seasonal workers.

The hiring announcements come as retailers plan “early sales strategies to capture consumer spending against a backdrop of economic uncertainty.”

With concerns about inflation and fluctuating consumer confidence impacting purchasing behaviors, holiday shoppers are taking a more frugal approach this year, with about a third planning to reduce spending compared to last year.

Consumer spending slowed in August, climbing 0.2% compared to July’s 0.5% increase. Data from the Bureau of Economic Analysis suggested that continuing job growth pressures, along with early back-to-school and travel-related expenses, could have caused households to ease back on their spending.

“The trend is concerning for retailers as they approach the vital holiday shopping season,” PYMNTS wrote Wednesday.

In response, Amazon, Walmart, Target and others are launching initiatives to attract buyers.

At the same time, consumer confidence in the economy is beginning to improve, which might spell good news for retailers.

The most recent reading of the University of Michigan’s Index of Consumer Sentiment was 70.1, up from 67.9 the previous month.

“While sentiment remains below its historical average in part due to frustration over high prices, consumers are fully aware that inflation has continued to slow,” Surveys Director Joanne Hsu said in a statement. “Sentiment appears to be building some momentum as consumers’ expectations for the economy brighten. At the same time, many consumers continue to report that their expectations hinge on the results of the upcoming election.”

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