Dim Holiday Hiring Outlook

RICHMOND, Va.--(BUSINESS WIRE)--On the heels of a 9.8 percent unemployment rate, a newly released SnagAJob.com survey shows that the outlook for hourly, seasonal jobs is dim, more than 40 percent below the actual holiday-hiring levels reported just two years ago. Added to that, competition for available jobs is intense, with a majority (54%) of hiring managers expecting more applications than last year.

“It’s hard for job seekers to be overly optimistic about holiday hiring this year”

The survey, conducted by third-party research firm Ipsos Public Affairs of 1,005 American managers who have responsibility for hiring hourly workers, finds that each manager, on average, plans on hiring 3.1 seasonal employees this holiday period. This is 16 percent fewer workers than the 3.7 seasonal workers they each intended to hire last year. (These figures account for the 53 percent of managers who don’t plan on making any seasonal hires this year and the 57 percent of managers who didn’t have recruiting plans in 2008.)

And looking back to 2007, the same SnagAJob.com survey reported that each manager reported hiring an average of 5.6 seasonal employees that year (including those who didn’t hire any workers), making this year’s intentions a 45 percent reduction from previous employment levels.

“It’s hard for job seekers to be overly optimistic about holiday hiring this year,” said Shawn Boyer, CEO of SnagAJob.com, a Web site for hourly employment. “Back-to-school shopping gave the retail industry some signs of life, and we certainly hope that a bit of a ‘spend’ attitude can carry over into the holiday season. Still, traditional retail outlets and other holiday employers are being understandably cautious as there’s a natural lag between consumer spending and an uptick in hiring. Bearing in mind the tough times we’re experiencing, our survey shows that hiring managers intend to hire more than 40 percent fewer seasonal employees than they hired in 2007, which is 16 percent fewer employees than they projected last year.”

Among the businesses that do plan to hire this year, each manager intends to hire an average of 6.7 employees, which is 26 percent fewer than the nine employees that were expected to be hired last year and a 40 percent drop from the 11.2 employees hired in 2007.

When asked why they did NOT intend to hire this season, the 53 percent of managers in this category pointed to the ability for current staff to take over additional hours (45%), lack of budget for seasonal hires (30%) and slower business levels (25%) as their reasons for not hiring. Overall, 58 percent of hiring managers expect holiday sales to be even with last year’s numbers, but one quarter anticipate a down season. (Nearly one in five managers – 18 percent – expects sales to be better than last year.)

Fierce competition

The SnagAJob.com survey points to a very competitive season for holiday job seekers. A majority (54%) of hiring managers expect the number of applications they receive to increase this year over last. Four in 10 (39%) believe the number of applications will be roughly the same, while just 7 percent believe there will be fewer applicants this year. Similar to last year’s findings, managers expect that one half (49%) of the individuals they hire will be workers who worked for them last season.

Good news for those who can land a job

For those who are hired, their opportunities may be better than last year. Hiring managers with available positions expect to pay seasonal employees an average of $10.40 an hour, an increase of $0.40 over last year. (Note: The Federal minimum wage increased in July by $0.70, which likely contributed to this anticipated increase in seasonal pay.) Secondly, if desired, seasonal employees have a better chance of turning temporary work into a permanent position. Employers said in 2008 that 46 percent of seasonal hires likely would stay on, a number that has increased 5 percentage points this year to 51 percent. Lastly, a slightly higher proportion of workers should receive full-time hours this year (45%) compared to last (43%).

Tips for landing a seasonal gig

SnagAJob.com offers the following tips to job seekers desiring a holiday position:

• Don’t delay. According to the survey, the peak month for holiday hiring is October, when 39 percent of hiring managers begin hiring. September and November are the “shoulder seasons” for holiday hiring as 23 percent began hiring last month, and 19 percent expect to start hiring next month.
• Consider retail, but also be aware of other options. The holiday season is typically a boon for places like toy stores – Toys “R” Us^®, a SnagAJob.com employer, expects to hire 35,000 seasonal workers – but retail is not your only option. UPS^® is hiring for seasonal drivers. JCPenney Portraits^® is hiring team members to take holiday photos. And looking ahead to 2010, tax companies such as Jackson Hewitt Tax Service^® are beginning to hire tax preparers.
• Focus on a positive attitude. More than anything, a positive attitude is likely to impress hiring managers. Three in 10 hiring managers say that a positive attitude is the most important attribute a prospective seasonal hire can possess, although previous experience is nearly as compelling; 27 percent of hiring managers desire it most.
• Go back to where you’ve been before. This is not the year to be selective about a seasonal job. If you’ve worked for a certain business before, check with it to see if it will be hiring again. You will have a leg up on other applicants because your previous experience will make you easier to train. The survey indicates that one half (49%) of the individuals managers hire will be workers who worked for them last season.

Survey Methodology

On behalf of SnagAJob.com, Ipsos Public Affairs, a third-party research firm, polled a cross-section of 1,005 men and women ages 18+ across the country who are responsible for hiring hourly, seasonal employees. Sample industries represented included: customer service/service; retail; office/business; healthcare; construction; education; non-profit; and restaurants, among others. The online survey was conducted between Sept. 11-17, 2009. Its results are based on a sample where sampling and weighting are used to ensure that the sample reflects that of the actual American population, according to Census data. An unweighted probability sample of this size, with a 100% response rate, would have an estimated margin of error of +/- 3.1 percentage points, 19 times out of 20. The margin of error would be larger for other sub-groupings of the survey population.

About SnagAJob.com

SnagAJob.com, America’s largest hourly job Web site, has helped connect hourly workers with quality full-time and part-time jobs in a wide range of industries since 2000. Headquartered in Richmond, Va., SnagAJob.com also provides both job seekers and employers with valued insights and a cutting-edge interface that are unique to hourly employment. That, combined with more than 135 million annual searches, about 17 million registered job seekers and approximately 100,000 active job postings, makes SnagAJob.com exceptionally qualified to share the experiences of the hourly workforce with the rest of the country. Current clients include DISH Network^®, Verizon Wireless^®, FedEx^®, Boston Market^®, Chick-fil-A^®, Bed Bath & Beyond^®, Michaels^® and Jiffy Lube^®. Learn more about the No. 1 source for hourly employment at SnagAJob.com.