An Improving Economy Presents Challenges For Some Retailers

The holiday season is typically a major money-maker for retailers as Americans head out to buy gifts. However, this year as major retailers prepare for an influx of customers, they are finding it more difficult to hire part-time staff to fill their holiday positions.

The lack of excess workforce in the United States has cut down on those looking for short-term jobs, making the holiday season a difficult one for retailers who need to expand their hours and boost the number or staff to deal with rising store traffic.

Shipping Concerns

As online shopping has exploded in popularity during the holidays, the need for excess staff at logistics companies like FedEx Corporation FDX and e-commerce firms like Amazon.com, Inc. AMZN has grown.

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Delivery issues that have plagued online retailers in previous years due to weather could return if their warehouses aren't fully equipped to deal with last-minute shoppers. Some worry that sites won't offer the fast delivery options available in past years, which could deter people from shopping online and instead increase purchases at brick-and-mortar stores.

Reworking Contracts

Some firms are trying to rework their holiday plans in order to accommodate the lack of new hires. While holiday workers used to work around seven hours per week, this year firms are planning to increase the number of hours worked to between 18 and 20 per week to make up for the gap. Others say they will use their full time employees to fill the gap by offering extra hours and working around their schedules.

Many companies have had to raise the pay for new hires in order to attract potential employees with such a small hiring pool at hand.