Retailers plan to slash seasonal hiring to the lowest levels in 15 years while expecting record-breaking holiday sales, signaling a troubling shift that could leave working families with fewer job opportunities during the critical holiday season.
Story Highlights
- Seasonal retail hiring drops to 265,000-365,000 workers, down from 442,000 in 2024.
- Holiday sales expected to surpass $1 trillion for the first time despite reduced workforce.
- Labor market strain is reflected in the highest job cuts since 2020.
- Inflation concerns persist as retailers pass tariff costs to consumers.
Retailers Cut Holiday Jobs Despite Record Sales Projections
The National Retail Federation projects retailers will hire between 265,000 and 365,000 seasonal workers from November 1 to December 31, 2025, marking a dramatic decrease from 2024’s 442,000 hires. This represents the lowest seasonal hiring level in 15 years, occurring simultaneously with expectations that holiday sales will exceed $1 trillion for the first time.
The contradiction between reduced hiring and record sales projections raises questions about corporate priorities and worker treatment during America’s most profitable retail period.
Fox: This year's holiday hiring is going to be at the lowest level in 15 years. Retailers will hire between 265,000 and 365,000 seasonal employees. That compares with 442,000 last year. Why the slowdown? This is indicative of a softer job market pic.twitter.com/HGI5B6WWJf
— FactPost (@factpostnews) November 7, 2025
Labor Market Strain Reflects Broader Economic Challenges
NRF chief economist Mark Mathews acknowledged the hiring decline reflects “the softening and slowing labor market,” with businesses nationwide holding off on new worker additions.
Job cuts through October 2025 have reached their highest levels since 2020, indicating systemic labor market stress. This trend undermines the economic recovery promises made during previous administrations and suggests corporations prioritize profit margins over providing employment opportunities for American families seeking seasonal income during the holidays.
Inflation Pressures Mount as Tariff Costs Hit Consumers
Consumer concerns about rising prices intensify as inflation ticks higher, driven in part by tariffs on imported goods. Federal Reserve Bank of St. Louis analysis reveals retailers passed approximately one-third of new import duties onto consumers between May and July.
NRF senior economist Jack Kleinhenz noted consumers remain “concerned about inflation and rising prices” despite their willingness to spend on holiday priorities. This cost-shifting strategy protects corporate profits while burdening working families already struggling with elevated living expenses.
Corporate Strategies Favor Existing Workers Over New Hires
Retailers justify reduced seasonal hiring by citing staff additions in previous years and encouraging current employees to work additional shifts. Target exemplifies this approach by asking existing retail workers to pick up extra holiday hours before considering new seasonal hires.
While NRF economists claim retailers are “seeing less firing,” this strategy concentrates work among fewer employees rather than expanding opportunities.
This approach may benefit existing workers with overtime pay but eliminates traditional seasonal employment pathways for students, retirees, and those seeking supplemental holiday income.
