WSJ: Some Retailers Are Cautious About Adding Jobs for Holidays

[question everything]

Some Retailers Are Cautious About Adding Jobs for Holidays

By KORTNEY STRINGER
Staff Reporter of THE WALL STREET JOURNAL
October 29, 2004; Page A2


November and December are typically months when retailers pad their employment rolls with new hires to get through the busy holiday shopping season. But mixed sales forecasts coupled with disappointing results recently in certain sectors are combining to make some retailers more cautious in their hiring plans.

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One reason is that low- and middle-income shoppers, pinched by elevated energy bills and low wages, have cut back their spending. On the other hand, growing confidence among well-heeled shoppers has driven strong sales among upscale chains and electronics retailers.

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Overall, industry experts expect holiday hiring to be flat, mirroring last year's seasonal spurt, when the nation's retailers beefed up staffing by 3.9%, or an additional 800,000 workers. That was the highest gain since 1994, according to the National Retail Federation, a Washington trade group.

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Lackluster hiring could also be bad news for the economy. The economy could use a big end-of-the-year boost from the retail sector. Economists say employment needs to grow by about 150,000 net jobs a month just to keep up with population growth, but it has fallen well short of that. A recent U.S. Labor Department report showed nonfarm payrolls rose only by 96,000 jobs in September, 128,000 jobs in August and 85,000 jobs in July.

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Write to Kortney Stringer at [e-mail]

URL for this article:
http://online.wsj.com/article/0,,SB109900069180558986,00.html

[wishlist]

1. A lot of large companies have announced big layoffs by end of 2004

Economy will be tight this winter between high oil and gas prices and impending layoffs. Several large companies have announced layoffs and plant closures to take place between now and January.

[The Backlash Cometh]

2. I, unfortunately, saw this coming.

Our Christmas gifts to others will be a mixed back of high school booster items & creative home videos. No real reason to go shopping at my house.

[bleedingheart]

3. aside from a few things for the kids...we aren't buying anything

and have told other family members to give to charity if they desparately want to give something...