A number of the nation’s largest retailers have already announced they will add tens of thousands of jobs each for the season. The National Retail Federation (NRF) reports the total of these should be extraordinarily high — between 730,000 and 790,000. The seasonal jobs and what they pay should boost the economy in the final two months of the year. However, if many of these workers go back to the unemployment lines, the lift will be short-lived.
NRF Chief Economist Jack Kleinhenz said:
With the labor market steadily improving and hiring increasing, we should witness a corresponding lift in business activity and consumer spending. The economy is progressing toward sustainable growth with employment gains key to improved confidence and self-reinforcing economic growth.
Put another way, the economy will fuel the additions in the retail industry.
A 24/7 Wall St. analysis of retailer job additions found that several large companies will add over 50,000 jobs for the holidays. These include that largest retailer in America, Wal-Mart Stores Inc. (NYSE: WMT), which will hire 60,000 temporary workers. Also on the list are Kohl’s Corp. (NYSE: KSS), Target Corp. (NYSE: TGT) and Macy’s Inc. (NYSE: M).
The negative part of the rise in jobs will likely come at the end of the quarter, or in the first quarter of next year. Almost certainly, hundreds of thousands of those hired will be laid off, unless the shopping season is extraordinarily successful. If forecasts are correct, that will not happen. Total store sales for the last two months of 2014 are expected to rise only 4%.
Another hit to the retail employee base is layoffs that come from struggling retailers. J.C. Penney Co. Inc. (NYSE: JCP) needs a surge in sales to prove its recent resurgence is not temporary. Sears Holdings Corp. (NASDAQ: SHLD), which owns Sears and Kmart, is so badly off that a strong holiday is nearly impossible.
The new jobs could be only an economic phantom.
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