What: Retailers are projecting the lowest level of holiday season hiring since 2008, shifting away from large-scale seasonal recruitment.

Why it is important: This shift signals a fundamental change in retail labour strategy, driven by economic pressures and the rise of automation.

As the 2025 holiday season approaches, retailers are taking an unprecedentedly cautious approach to seasonal hiring, with projections indicating the lowest level of holiday recruitment since the global financial crisis. This conservative stance is a direct response to economic uncertainty, persistent inflation, and the impact of new tariffs, all of which have dampened consumer sentiment and made companies wary of overcommitting to temporary staff. Instead, retailers are focusing on maximising the productivity of their permanent workforce, investing in training, and leveraging flexible labour models to fill gaps as needed. The rapid adoption of automation, artificial intelligence, and self-service technologies is further reducing the need for large waves of seasonal hires, allowing companies to streamline operations and control costs. While some retailers, such as Bath & Body Works and Spirit Halloween, continue to announce hiring plans, the overall trend is toward doing more with less. This strategic pivot reflects a broader transformation in retail labour management, prioritising operational resilience and long-term efficiency over short-term staffing surges.

IADS Notes: The 2025 holiday hiring slowdown is consistent with recent industry analysis, which shows a surge in retail layoffs and restructuring amid mounting economic and profitability pressures (March 2025). Retailers are responding to inflation, tariffs, and labor market uncertainty by adopting leaner inventory strategies and overhauling supply chains (September 2025). The shift toward automation and AI is accelerating, with leading companies achieving significant productivity gains and focusing on workforce augmentation rather than replacement (November 2024, March and September 2025). This evolution in labor strategy is enabling retailers to maintain flexibility and resilience in a volatile market environment.

Retailers say no, no, no to holiday season hires for Christmas rush