Holiday Hiring Freeze: Why U.S. Retailers Are Scaling Back Seasonal Jobs

The 2025 holiday season is approaching, but unlike previous years, U.S. retailers are hitting the brakes on seasonal hiring. With fewer than 500,000 temporary jobs expected—marking the lowest level since the Great Recession—this shift signals deeper economic and structural changes in the retail industry. Here’s what it means, why it’s happening, and how it could affect workers, businesses, and consumers.

A Cold Winter for Holiday Jobs

In a year marked by inflationary pressures, cautious consumer spending, and rapid automation, the U.S. retail sector is preparing for a subdued holiday season. According to recent labor market data, retailers are expected to hire fewer than 500,000 seasonal workers—a dramatic drop from the 700,000+ average seen in the 2010s.

This decline reflects a broader transformation in how retailers operate, how consumers shop, and how technology is reshaping the labor landscape.

From Boom to Bust

Seasonal hiring has long been a bellwether for retail health. In strong economic years, companies like Amazon, Walmart, Target, and Macy’s would ramp up hiring to meet surging holiday demand. In 2018, for example, Amazon hired over 200,000 temporary workers for the holidays.

But in 2025, the story is different:

• Amazon is hiring 40% fewer seasonal workers than last year.
• Walmart is focusing on internal labor optimization rather than external hiring.
• Target is offering more hours to existing staff instead of onboarding new temps.

This shift suggests that retailers are prioritizing cost control and efficiency over expansion.

The Automation Factor

One of the biggest drivers behind reduced hiring is automation. Retailers have invested heavily in:

• Self-checkout systems
• Warehouse robotics
• AI-driven inventory management
• Chatbots and virtual customer service agents

These technologies reduce the need for human labor, especially during peak seasons. While they improve margins and speed, they also displace thousands of entry-level jobs that once served as gateways into the workforce.

Economic Pressures and Consumer Behavior

The U.S. economy in 2025 is facing mixed signals:

• GDP growth is steady but slowing, revised to 3.8% in Q2.
• Inflation remains sticky, especially in food and services.
• Interest rates are high, dampening consumer credit and spending.

As a result, consumers are:

• Spending more cautiously
• Prioritizing essentials over gifts
• Shopping earlier to avoid price hikes

Retailers, anticipating lower foot traffic and tighter margins, are adjusting their staffing needs accordingly.

Impact on Workers

For many Americans, seasonal retail jobs are a lifeline:

• Students looking for extra income
• Parents balancing part-time work
• Seniors supplementing retirement
• Unemployed individuals seeking re-entry into the workforce

With fewer opportunities available, these groups face increased competition and reduced earnings. The average hourly wage for seasonal retail jobs has risen slightly, but that’s cold comfort when positions are scarce.

Structural Shifts in Retail

Beyond the economy, the retail industry itself is evolving:

• E-commerce now accounts for over 30% of holiday sales, reducing the need for in-store staff.
• Buy Online, Pick Up In Store (BOPIS) models streamline operations.
• Smaller store footprints and fewer physical locations mean fewer jobs.

Retailers are also investing in predictive analytics, allowing them to forecast demand more accurately and avoid overstaffing.

Efficiency vs. Humanity

While the reduction in seasonal hiring may make sense from a business standpoint, it raises ethical and social questions:

• Are companies doing enough to support displaced workers?
• Should there be policies to retrain or redeploy labor affected by automation?
• Is the pursuit of efficiency eroding the human element of retail?

Retail has always been more than transactions—it’s about experience, service, and connection. As algorithms replace greeters and robots replace stockers, the soul of retail risks being lost.

A Season of Reflection

The 2025 holiday season won’t just be quieter in stores—it will be quieter in job boards. As retailers tighten their belts and automate their aisles, thousands of workers are left out in the cold.

This moment calls for reflection on the kind of economy we want to build. One that values efficiency, but also inclusion, opportunity, and dignity.