Wednesday, September 16, 2009
Tweet[IWS] Challenger: RETAILERS HOPEFUL FOR HOLIDAYS--HIRING COULD BE SLOW [16 September 2009]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Challenger, Gray & Christmas, Inc.
CONTACTS
James K. Pedderson, Director of Public Relations
Office: 312-422-5078
Mobile: 847-567-1463
jamespedderson@challengergray.com
Colleen Madden, Media Relations Manager
Office: 312-422-5074
colleenmadden@challengergray.com
Press Release 16 September 2009
Retailers See Some Hope Heading into Holidays
seasonal hiring could STAY slow as retailers remain cautious
CHICAGO, September 16, 2009 Better-than-expected back-to-school sales results may lift the spirits of many retailers who were probably anticipating a bleak holiday season. However, more optimism may not necessarily lead to increased seasonal hiring by cautious retailers, according to annual holiday hiring forecast released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.
"Holiday hiring might improve slightly over last year, but only because 2008 saw the lowest seasonal employment growth in nearly 20 years. With millions of Americans out of work and many more simply cutting back on all discretionary spending, few retailers will take the risk of eating into slim profits with extra workers," said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
Last year, retail employment grew by just 384,300 from October through December, according to non-seasonally adjusted data from the Bureau of Labor Statistics. That was nearly 50 percent fewer than in 2007, when retailers added 720,800 workers during the holiday months.
The 384,300 seasonal workers hired in 2008 represent the lowest holiday hiring figure since 1989, when retailers added just 380,500 workers.
While there have been some signs that the recession may be over, conditions have remained dismal for retailers. As a result, employers in the sector have announced 89,242 job cuts through August, an 82 percent surge from the 48,971 retail job cuts recorded in the first eight months of 2008.
"However, there are some signs of hope," said Challenger. "After heavy downsizing in the first quarter, job cuts in the retail sector slowed significantly in the second quarter and are on track to be even lower in the third quarter. Additionally, the latest data on retail sales were better than expected."
The latest report from the Commerce Department shows that retail sales increased by 2.7 percent in August, after falling 0.2 percent in July. It was the biggest gain in three years. Much of the sales increase was due to robust car sales ignited by the government's cash-for-clunkers program. However, other retail categories saw improvement, including apparel, up 2.4 percent; sporting goods, up 2.3 percent; and general merchandise, up 1.6 percent.
"The stronger sales figures heading into the holidays could boost seasonal hiring above last year's meager activity. But the hiring surge may come later than normal this year, as many retailers wait to see how holiday sales are going before adding extra workers," said Challenger.
"The good news for retailers is that if there is a need for late hiring, the labor pool is flush with qualified candidates who undoubtedly would be eager to earn some extra holiday spending money and take advantage of employee discounts," said Challenger.
According to Challenger, the best opportunities for seasonal job seekers will be at the large discounters like Target and Wal-Mart, which will be heavily favored by cost-conscious consumers this holiday season. However, job seekers may have to look beyond the sales clerk positions for available spots.
"The big box stores need extra workers on the floor, but they also need extra workers in their shipping facilities and overnight stocking positions. Opportunities also exist outside of retail, in areas like catering and with shipping companies such as UPS and FedEx," said Challenger.
"Job seekers should also be prepared to be on standby. In other words, retailers may conduct interviews in September and October and prepare a list of hirable candidates that they will call only when it becomes obvious that more manpower will be needed.
When job seeking in retail or any other sector, it is important to remember some key interview guidelines: dress appropriately, be on time, show enthusiasm and follow up. According to one hiring manager, the biggest mistake job applicants make when seeking a holiday position is "demanding a specific schedule from prospective employers."
Temporary workers must be prepared to be flexible, whether it is hours or type of work. Either can vary as the holiday season progresses.
"Holiday job seekers should start their search by contacting friends already working in establishments that could need holiday workers. You should also target establishments of which you are a frequent customer. If there are certain retail outlets where you would prefer to work, start going there when business is slow and try to make a connection with a manager or assistant manager. The key is separating yourself from the pile of applicants the store will see between now and Halloween," Challenger concluded.
# # #
JOBS ADDED IN RETAIL TRADE
October, November, December, 1999-2008
Oct Nov Dec TOTAL Job Growth Compared to Previous Year
1999 172,300 369,000 308,100 849,400 8.0%
2000 143,700 393,800 250,600 788,100 -7.2%
2001 95,700 352,000 137,600 585,300 -25.7%
2002 125,900 350,400 193,300 669,600 14.4%
2003 145,100 305,000 189,900 640,000 -4.4%
2004 157,800 371,800 180,600 710,200 11.0%
2005 122,300 392,700 196,400 711,400 0.2%
2006 150,600 427,200 169,000 746,800 5.0%
2007 87,900 465,400 167,500 720,800 -3.5%
2008 59,100 233,700 91,500 384,300 -46.7%
2009 ??? ??? ??? ???
AVERAGE 126,040 366,100 188,450 680,590
Source: Challenger, Gray & Christmas, Inc., with data provided by the Bureau of Labor Statistics
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Challenger, Gray & Christmas, Inc.
CONTACTS
James K. Pedderson, Director of Public Relations
Office: 312-422-5078
Mobile: 847-567-1463
jamespedderson@challengergray.com
Colleen Madden, Media Relations Manager
Office: 312-422-5074
colleenmadden@challengergray.com
Press Release 16 September 2009
Retailers See Some Hope Heading into Holidays
seasonal hiring could STAY slow as retailers remain cautious
CHICAGO, September 16, 2009 Better-than-expected back-to-school sales results may lift the spirits of many retailers who were probably anticipating a bleak holiday season. However, more optimism may not necessarily lead to increased seasonal hiring by cautious retailers, according to annual holiday hiring forecast released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.
"Holiday hiring might improve slightly over last year, but only because 2008 saw the lowest seasonal employment growth in nearly 20 years. With millions of Americans out of work and many more simply cutting back on all discretionary spending, few retailers will take the risk of eating into slim profits with extra workers," said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
Last year, retail employment grew by just 384,300 from October through December, according to non-seasonally adjusted data from the Bureau of Labor Statistics. That was nearly 50 percent fewer than in 2007, when retailers added 720,800 workers during the holiday months.
The 384,300 seasonal workers hired in 2008 represent the lowest holiday hiring figure since 1989, when retailers added just 380,500 workers.
While there have been some signs that the recession may be over, conditions have remained dismal for retailers. As a result, employers in the sector have announced 89,242 job cuts through August, an 82 percent surge from the 48,971 retail job cuts recorded in the first eight months of 2008.
"However, there are some signs of hope," said Challenger. "After heavy downsizing in the first quarter, job cuts in the retail sector slowed significantly in the second quarter and are on track to be even lower in the third quarter. Additionally, the latest data on retail sales were better than expected."
The latest report from the Commerce Department shows that retail sales increased by 2.7 percent in August, after falling 0.2 percent in July. It was the biggest gain in three years. Much of the sales increase was due to robust car sales ignited by the government's cash-for-clunkers program. However, other retail categories saw improvement, including apparel, up 2.4 percent; sporting goods, up 2.3 percent; and general merchandise, up 1.6 percent.
"The stronger sales figures heading into the holidays could boost seasonal hiring above last year's meager activity. But the hiring surge may come later than normal this year, as many retailers wait to see how holiday sales are going before adding extra workers," said Challenger.
"The good news for retailers is that if there is a need for late hiring, the labor pool is flush with qualified candidates who undoubtedly would be eager to earn some extra holiday spending money and take advantage of employee discounts," said Challenger.
According to Challenger, the best opportunities for seasonal job seekers will be at the large discounters like Target and Wal-Mart, which will be heavily favored by cost-conscious consumers this holiday season. However, job seekers may have to look beyond the sales clerk positions for available spots.
"The big box stores need extra workers on the floor, but they also need extra workers in their shipping facilities and overnight stocking positions. Opportunities also exist outside of retail, in areas like catering and with shipping companies such as UPS and FedEx," said Challenger.
"Job seekers should also be prepared to be on standby. In other words, retailers may conduct interviews in September and October and prepare a list of hirable candidates that they will call only when it becomes obvious that more manpower will be needed.
When job seeking in retail or any other sector, it is important to remember some key interview guidelines: dress appropriately, be on time, show enthusiasm and follow up. According to one hiring manager, the biggest mistake job applicants make when seeking a holiday position is "demanding a specific schedule from prospective employers."
Temporary workers must be prepared to be flexible, whether it is hours or type of work. Either can vary as the holiday season progresses.
"Holiday job seekers should start their search by contacting friends already working in establishments that could need holiday workers. You should also target establishments of which you are a frequent customer. If there are certain retail outlets where you would prefer to work, start going there when business is slow and try to make a connection with a manager or assistant manager. The key is separating yourself from the pile of applicants the store will see between now and Halloween," Challenger concluded.
# # #
JOBS ADDED IN RETAIL TRADE
October, November, December, 1999-2008
1999 172,300 369,000 308,100
2000 143,700 393,800 250,600 788,100
2001 95,700
2002 125,900 350,400 193,300 669,600
2003 145,100 305,000 189,900 640,000
2004 157,800 371,800 180,600 710,200
2005 122,300 392,700 196,400 711,400
2006 150,600 427,200 169,000 746,800
2007 87,900
2008 59,100
2009 ???
AVERAGE
Source: Challenger, Gray & Christmas, Inc., with data provided by the Bureau of Labor Statistics
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
****************************************
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 11:00 AM
