What's Happening?
As the 2025 holiday season approaches, employers are exhibiting caution in their hiring practices despite an increase in job openings and applications. According to a report from iCIMS, a talent acquisition
software company, job openings have increased by 9% and applications by 19% since September 2024. However, hiring rates have remained flat year over year, suggesting a cautious approach by employers. The retail sector, in particular, has seen a 15% rise in job openings and a 7% increase in hires year over year in September. Despite this, hiring has decreased for three consecutive months, dropping by 9% since July. The time to fill positions in retail has also increased from 40 to 42 days. The transportation sector has experienced growth as well, with job openings up 19% and hires rising 7% year over year. However, the time to fill these positions has decreased from 42 to 38 days. Seasonal hiring trends indicate a shift towards older applicants, with a decrease in the share of applicants aged 18 to 24.
Why It's Important?
The cautious approach to hiring during the holiday season reflects broader economic uncertainties and potential shifts in labor market dynamics. Employers are focusing on specific capabilities, such as technological advancements, to meet their needs. This trend could impact the retail and transportation sectors significantly, as these industries traditionally rely on seasonal hiring to manage increased demand. The shift towards older applicants may indicate changing workforce demographics and preferences. The flat hiring rates, despite increased applications, suggest that employers are prioritizing efficiency and quality over quantity in their hiring processes. This cautious stance could affect consumer spending and economic activity during the holiday season, as fewer seasonal workers may lead to reduced service levels and longer wait times for consumers.
What's Next?
Employers are likely to continue refining their hiring processes to improve efficiency and reduce time to fill positions. The focus may shift towards faster conversion of applicants rather than increasing sourcing efforts. As the holiday season progresses, companies may need to adapt quickly to changing consumer demands and workforce availability. The potential for a lower seasonal hiring rate since 2009 could prompt businesses to explore alternative staffing solutions, such as temporary or gig workers, to meet their needs. Additionally, the emphasis on technological capabilities may drive further investment in training and development programs to equip workers with the necessary skills.
