More Holiday Job Seekers, Fewer Spots on Sales Floor
Retail Hiring Weakens With Economy

By Ylan Q. Mui and V. Dion Haynes
Washington Post Staff Writers
Monday, November 17, 2008

This is the time of year when retail jobs are supposed to be as plentiful as holiday cheer, when stores gear up for the Christmas rush by filling their sales floors with college students, moonlighters and anyone else looking to shore up their income.

But no one is feeling very jolly this year.

Faced with plummeting sales and spooked shoppers, retailers have cut back on holiday hiring at a time when their pool of applicants is swelling with those who have been laid off from other industries. About 272,000 retail jobs were open at the end of September, according to government data released last week, down 24 percent from the same month last year. Those numbers are expected to drop further as retailers cut back on opening new stores and close those that don't perform well.

"It's bleak on both sides," said K.C. Blonski, director of travel, leisure and retail markets for consulting firm AchieveGlobal. "Retailers are looking at the cost of adding to their labor pool. The jobs are little and far between."

Even those who have jobs are not unscathed. Managers at restaurants throughout the Washington region say they not only are reducing staff through attrition, but they are also cutting hours. Some servers say they are getting fewer tips because fewer people are dining out and those who do have become more stingy.

For Rick and Nina Ivey, owners of 15 Virginia Barbeque restaurants, the contracting economy means a halt in hiring even though a flurry of people in their 30s and 40s have asked about entry-level jobs. For 18-year-old Megan Waters of Annapolis, it means applying at 14 stores before landing a job at California Tortilla. And for a national retailer like Best Buy, it means nearly 1 million applicants for no more than 20,000 seasonal jobs, a 20 percent increase in applicants over previous years.

The national unemployment rate reached 6.5 percent in October, according to government data, and some analysts are projecting that it will climb to 7.3 percent next year after hovering between 4 and 5 percent for about three years. There were 1,330 mass layoffs during the third quarter that affected nearly 220,000 workers, spurred largely by slowing demand for consumer goods -- and leaving many of those affected to turn to the retail and restaurant sector as they scramble to make ends meet this holiday season.

"Typically in a down economy, there are definitely more applicants," said Dan Butler, vice president of merchandising and retail operations at the National Retail Federation, a trade group. "For retailers, it's good to have more applicants because you can be sure that you're getting the best possible candidate. But they're not going to hire more."

Toys R Us said the applicant pool for its 35,000 seasonal positions is larger and more qualified than in previous years. Outdoor retailer Bass Pro Shops said roughly 3,500 people applied for 300 jobs at a store that will open in Alabama this week. It has seen increased interest in its 1,500 holiday jobs. Best Buy store manager Robert Delissio said this year many applicants have shown up at his Columbia Heights store with professional résumés in hand. He's hired between 35 and 45 people so far.

"I'm a little bit more selective now than I would normally have to be," he said.

The Container Store began its holiday recruitment and hiring late last month, and applications are up about 5 to 10 percent from last year, said John Thrailkill, vice president of stores. Typically, each store adds 15 to 20 employees to its average staff of 60 during the holiday season. But as sales slow this year, it is planning to hire just an additional 12 to 15 workers.

"It definitely makes it a little more competitive environment," he said.

Thrailkill said he noticed many applicants this year had full-time careers but are not working now. That can be a boon for retailers seeking experienced employees, and the flexibility of retail jobs allows the employees to continue their job search while making money. But Thrailkill said the company asks seasonal hires to commit through January.

"What you don't want to have happen is you hire this great person, and then they find their dream job," Thrailkill said. "We want to make sure they give us some chance to still work with us."

Xina Eiland, president of Spa O and a public relations firm in the District, said she interviewed about 10 people over the summer for a $300-a-week entry-level assistant position but got few takers.

"They wanted more hours and didn't like the job description," said Eiland, who ultimately hired a college graduate who had lost her job at a magazine.

But over the past few weeks, Eiland said, about five people who rebuffed her during the summer have called back about the job. One, she said, included a woman living in California who sought to telecommute.

They said, " 'My job got downsized. Are you still looking for an assistant?' " she said. "I told them I'm using somebody now, but if anything opens up I'd let them know."

Even those who are employed may not be seeing the same benefits. Some restaurant servers say they aren't making as much in tips.

"Instead of 20 percent, I'm seeing 15 percent," said Liann Brobst, a server at a Red Hot & Blue restaurant in Gaithersburg. She said she used to bring home as much as $180 a night. Now she is lucky to break $100.

The job market is unlikely to improve before the holiday season ends. The retail sector added about 65,900 jobs last month, 19 percent below last year and the smallest October figure since 1991, according to outplacement consulting firm Challenger, Gray & Christmas. Chief executive John Challenger said he doubted November would produce a significant gain.

"This could end up being one of the weakest holiday hiring seasons in nearly two decades," he said.

Dan Russell, vice president at Aon Consulting, which works with several big-box and specialty retailers, said retailers also have traditionally been wary of job seekers from outside the industry. They worry applicants may be overqualified for the position and leave quickly, he said.

Butler said pay expectations also may not jibe with reality. The average retail wage was $11.79 per hour with an annual salary of $24,530 in 2007, according to data from the Bureau of Labor Statistics. The national average for all occupations was a $19.56 hourly wage and $40,690 annual salary.

And many professionals, accustomed to sitting in ergonomic desk chairs, don't realize the physical stamina required to stay on their feet eight hours a day.

"A lot of people underestimate that it is a lot of work," Butler said.