Seasonal hiring slowdown could hit New Jersey retailers hard

🎄Seasonal jobs may be scarce: 2025 could bring the lowest holiday hiring levels since 2009.

🎄NJ retailers feel the squeeze: Inflation, tariffs, and the government shutdown threaten staffing plans.

🎄 Still hope for workers: Some holiday jobs may lead to full-time positions after the season ends.

Seasonal hiring. It’s that time of year when retailers, especially, look to hire holiday season workers. Many people rely on this work either because, one, they don’t have a job and they know that at least seasonal work may help with the bills, or two, they’re looking to supplement their income.

However, there could be a wrinkle in this plan for 2025.

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Seasonal hiring drops to lowest level since 2009

According to a report from Challenger, Gray & Christmas, seasonal hiring across the nation is expected to fall to its lowest level since 2009, following a dismal summer hiring season.

This is not surprising news considering there is a lot of uncertainty with the economy right now for retailers and consumers, said John Holub, president of the New Jersey Retail Merchants Association.

New Jersey is also expected to see a decline in seasonal employee hires, as looming tariffs, inflationary pressures, and the government shutdown all play a role, he said.

Retailers slash labor costs amid inflation and tariffs

Amidst this uncertainty, the one thing employers can control is labor costs. “If you’re projecting slower growth in sales, then it’s fair to say you’re going to see lower growth in who you employ,” Holub explained.

However, despite the gloomy prediction, retailers will still hire seasonal workers this year, Holub said. They just won’t hire at the rate that was seen in the past.

“The beauty of these holiday jobs, a lot of times, they translate into employment past the holiday season, as well. This gives an opportunity for the employer to see how good somebody is, and they’ll offer them a full-time job after the holidays. So, that’s still going to happen,” Holub said.

Fewer openings at NJ stores this holiday season

But there will be a pullback. It might be that a retail store that typically hires 10 seasonal workers may only be able to hire five this year.

The Challenger, Gray, & Christmas report also predicts that retailers may add fewer than 500,000 positions in the last three months of 2025, marking the smallest seasonal gain in 16 years.

For example, Bath and Body Works announced plans to hire 32,000 workers this holiday season nationwide, including 2,000 workers in distribution centers. Kohl’s and Target announced that they were hiring seasonal workers, but did not provide an exact number.

Holub said New Jersey stores are very much in line with these national numbers, too.

Both big box retailers and mom-and-pop shops are affected by the tariffs and rising inflation. Small businesses may feel it more, but they are under the same pressures as the larger stores, he added.

Cautious optimism remains for NJ retailers

Nonetheless, despite the economic uncertainties and a pullback in hiring, he said Garden State retailers remain cautiously optimistic about the upcoming holiday season.

“Retail is a very dynamic industry. We’ve faced a lot worse challenges over the years,” Holub said. Many retailers will be able to adapt.

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