Retail giant Target is hoping to hire 120,000 seasonal workers this year, 20 percent more than it did last year — but knows it won’t be easy.
The nation’s unemployment rate, now 3.9 percent, remains near record lows, and retailers say it has become increasingly difficult to attract new workers. As a result, Target is offering more incentives than usual to lure temporary employees to its 1,800 stores and 39 distribution centers.
Among those perks: $500 gift cards, starting pay of $12 an hour, and 20 percent discounts on certain items, including fruits, vegetables and workout clothes.
“As the marketplace becomes more competitive, the significant investment we’re making in our team sets Target apart,” Stephanie Lundquist, the company’s chief human resources officer, said in a statement.
By most measures, retailers are in for a strong holiday season. A low unemployment rate, coupled with recent tax cuts that have increased take-home pay for many Americans, have led to brisk demand for everything from groceries to big-screen TVs. Sales have climbed at a number of the country’s largest chains, including Walmart, Nordstrom and Home Depot, as Americans shop more both in stores and online.
As a result, retailers are likely to need more seasonal workers than in previous years — particularly as they try to accommodate an influx of online shoppers, analysts say.
“While e-commerce is very easy for the consumer, it’s a very labor-intensive process for retailers, especially in fulfillment centers,” said Neil Saunders, managing director of reserch firm GlobalData Retail. “The challenge for retailers is going to be filling all of these posts.”
Target, for example, says it is doubling the number of seasonal employees devoted to fulfilling online orders. Other companies like Amazon.com tend to hire more than 100,000 temporary workers each fall to meet holiday demand. (Jeff Bezos, the founder and chief executive of Amazon, owns The Washington Post.)
But Saunders says it may be harder to attract seasonal workers this year for what are typically low-wage, temporary positions.
“If people are feeling better-off — which a lot of people are — that could deter those workers who would traditionally enter the market temporarily to make extra money during the holidays,” he said. “This is a good thing for workers, but not for retailers.”
Macy’s says it plans to hire 80,000 seasonal workers this year, roughly the same number as it did last year. Kohl’s, meanwhile, began hiring for the holidays in July, in hopes of locking in qualified workers.
