NEW YORK — Seasonal hiring in retail is expected to fall to its lowest level since the 2009 recession, a development that could ripple through pharmacies and community retailers during the busy holiday and flu season.
Job placement firm Challenger, Gray & Christmas reported on Wednesday that it anticipates retailers will add fewer than 500,000 positions in the final three months of 2025. That would mark an 8% decline from last year and the smallest seasonal gain in 16 years.
“Seasonal employers are facing a confluence of factors this year: tariffs loom, inflationary pressures linger, and many companies continue to rely on automation and permanent staff instead of large waves of seasonal hires,” said Andy Challenger, senior vice president at Challenger, Gray & Christmas. “This year may be more about doing more with less.”
The lack of hiring announcements underscores the cautious mood. Last year by this time, retailers including Target, Macy’s, Burlington Stores, Aldi and 1-800-Flowers had already disclosed plans for tens of thousands of seasonal workers. This year, they remain silent. Target has announced that it will increase hours for current employees and rely on its “On-Demand team” of approximately 43,000 flexible workers, but has not yet released the number of holiday hires.
So far, only a handful of retailers have provided figures. Spirit Halloween will hire 50,000 employees, unchanged from 2024, while Bath & Body Works plans to bring on 32,000, a slight decrease from last year. Amazon and UPS typically announce later in the season.
The pullback comes as the U.S. labor market cools. Nonfarm payrolls rose just 22,000 in August, far below expectations. Combined with persistent inflation, high interest rates, and new tariffs, the environment points to a restrained holiday season. Consulting firm PwC recently projected shoppers will spend 5% less on gifts, travel and entertainment this year — the first significant decline since 2020.
For pharmacies and other health-focused retailers, leaner seasonal staffing could mean thinner coverage at a time when demand typically spikes for vaccinations, wellness products and everyday essentials. Analysts warn that fewer associates on the floor may result in longer wait times, reduced availability of trained staff, and increased strain on frontline workers who support patients and customers during the peak of flu season and year-end holiday stress.
