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Holiday Hiring Uptick May Lift Job-Market Gloom

By IBTimes .com – Updated Apr 6, 2017 at 11:09AM

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Some retailers will add more workers than they did at this time last year.

The holiday season accounts for almost 40% of most companies' annual sales, and retailers will bring some Christmas cheer to hundreds of thousands of job seekers as they gear up to contend with the sales volume.

Between 550,000 and 650,000 people are expected to land jobs on account of the holiday season, according to national outsourcing firm Challenger, Gray, and Christmas. That's significantly more than the 501,400 added last year, although it's still well below the 720,800 added in 2007, just before the recession began.

Last week, Toys "R" Us said it will hire 45,000 people to help it look after customers during the busy season. The privately held company said its hiring plan doubles its current workforce, which it needs to help man the additional 600 Toys "R" Us Express "pop-up" stores that it temporarily sets up in malls and shopping centers.

Meanwhile, Macy's (NYSE: M) is hiring 65,000 additional employees and expects better earnings in the upcoming holiday season than last year. Kohl's (NYSE: KSS), the fourth largest U.S. department-store chain, plans to hire 40,000 people, or 21% more than last year. UPS (NYSE: UPS) said it will add 50,000 workers to deal with its sharp uptick in deliveries.

J.C. Penney's (NYSE: JCP) plan to hire 30,000 workers represents "a slight increase over last year," while Best Buy (NYSE: BBY), said that its plans to hire 29,000 workers comes out to "about the same" as in previous years.

Wal-Mart (NYSE: WMT), along with smaller rival Target (NYSE: TGT) and No.2 U.S. bookstore chain Borders (NYSE: BGP), also said they also plan to hire extra workers for the upcoming holiday season but did not disclose numbers.

Smaller companies such as Pier One (NYSE: PIR), American Eagle Outfitters (NYSE: AEO), Victoria's Secret, and Ann Taylor (NYSE: ANN) said they are looking for workers and are likely to hire well before the holiday season so their new employees can be trained by the end of November, when business begins to pick up.

Many retailers, who don't want to be saddled with too many workers on the rolls, are still cautious following a weak back-to-school season. Nonetheless, the seasonal hiring will boost the job market. An estimated 15 million people are currently jobless in the United States, and seasonal hiring often leads to a permanent job offer.

An inexperienced worker who picks up a seasonal retail job can expect to earn the minimum wage of $7.50 per hour, but an experienced person can earn from $20 to $40 per hour as a sales leader in an upscale store.

 

International Business Times, the Global Business News Leader

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Best Buy and Wal-Mart are Motley Fool Inside Value picks. Best Buy is a Motley Fool Stock Advisor selection. UPS is a Motley Fool Income Investor selection. Motley Fool Options has recommended buying calls on Best Buy. The Fool owns shares of Best Buy, UPS, and Wal-Mart. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. This article has been lightly edited. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Target Corporation Stock Quote
Target Corporation
TGT
$152.61 (-0.23%) $0.35
Walmart Stock Quote
Walmart
WMT
$130.06 (-2.50%) $-3.33
Best Buy Co., Inc. Stock Quote
Best Buy Co., Inc.
BBY
$68.78 (0.31%) $0.21
American Eagle Outfitters, Inc. Stock Quote
American Eagle Outfitters, Inc.
AEO
$10.24 (-3.58%) $0.38
United Parcel Service, Inc. Stock Quote
United Parcel Service, Inc.
UPS
$164.33 (-2.10%) $-3.53
Borders Group, Inc. Stock Quote
Borders Group, Inc.
BGPIQ
Macy's, Inc. Stock Quote
Macy's, Inc.
M
$15.72 (-0.44%) $0.07
Kohl's Corporation Stock Quote
Kohl's Corporation
KSS
$26.30 (-2.34%) $0.63
J. C. Penney Company, Inc. Stock Quote
J. C. Penney Company, Inc.
JCPN.Q
Pier 1 Imports, Inc. Stock Quote
Pier 1 Imports, Inc.
PIRRQ

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