Retailers scrimp on seasonal hires

The lines at the checkout counters may be even longer this winter, but not for the reason most retailers would hope.

With businesses still reeling from the recession, they're hiring fewer seasonal employees to assist holiday shoppers as a way to cut costs.

Traditionally, employment picks up in the month of November because of the many stores and restaurants that need extra staffing to cope with the onslaught of Christmas, Hanukkah and Kwanzaa spenders.

But consumer confidence remains low, some economists have said, and many shop owners doubt they'll see the kind of revenue they're used to during this time of year.

It's disappointing news for many of the unemployed who were looking toward the holidays as an opportunity to at least get some temporary work while they continue to look for permanent jobs.

Currently, Anne Arundel County's unemployment rate hovers at 6.5 percent. That's a stark contrast to the typical rate approaching the holidays for this area, which has historically stayed below 4 percent in Novembers prior to this recession.

Tom Saquella, president of the Maryland Retailers Association located in Annapolis, said that retailers in this area are dealing with the same issues facing the entire industry: They're being extremely cautious about their expenses, even though there are some signs that the economy is recovering.

Saquella said the association expects retailers will hire between 5 and 10 percent fewer holiday employees than usual this winter.

"I think retailers - if they find they're short on staff - most will take their existing part-time employees and just give them more hours," he said.

A CareerBuilder study conducted in September found that 18 percent of the survey's respondents planned to hire seasonal workers in the fourth quarter of this year for the holidays. Last year, when CareerBuilder initiated the same study to determine the outlook for seasonal hiring, the results were about the same at 17 percent.

These seasonal jobs seem to be getting more competitive. The study concluded that 12 percent of already gainfully employed workers are also pursuing side seasonal jobs to make a little extra cash for their holiday budgets.

In good economic times, retailers nationwide have hired a total of about 618,000 extra workers to offset the holiday rush, according to the National Retail Federation. But last year, in the crux of a dour economy, retailers hired only 231,000 additional employees.

According to the organization's recent study, while some retailers were hiring seasonal workers during last year's winter holidays, most were shedding full- and part-time jobs from stores and corporate offices.

Unhappy holidays

Locally, there are many businesses still in that struggle.

Salad Creations, a fast-food restaurant in the Westfield Annapolis mall, won't be able to find out if the holiday rush would provide a desperately needed bump in sales.

McQucio Moore, the owner who commutes from Charles County to work at the mall every day, said he's so far behind on his rent that the store will likely shut down in the next two weeks. Since around September 2008, his revenue has fallen about 50 percent, he said.

Moore, who left his 9-to-5 job as a probation officer in Washington, D.C., to pursue his dream of becoming a small business owner two years ago, said the realization that he will have to close has been heartbreaking.

But instead of frantically figuring out his next move, he's been more consumed with trying to find job placements for his seven employees. He's been trying to network with other business owners in the mall, he said, in hopes that some will be able to take on his former workers.

"These people have been with me since day one, and they're good employees," he said. "My main thing is to make sure they're OK."

This also means that Moore himself will join the ranks of the job seekers this season. And he has a family of five he wants to provide a good holiday for, too.

"I don't know what I'm going to do," Moore said. "I'm lucky in that I have a great family that's very supportive."

From an insider's perspective, he concedes that openings are few and far between at the mall.

But earlier this week, shoppers might have observed that more than 25 retailers at the mall - both small shops and department stores - had signs in their storefronts advertising holiday hiring. Some listed available full-time positions in addition to part-time work; some signs suggested their store's openings had potential for long-term positions.

Even Bailey, Banks & Biddle, a jewelry store with bright yellow signs hanging from its ceiling trumpeting a going-out-of-business sale, had signs on its counters advertising for seasonal help.

For those who desperately need the paycheck, Brent Rasmussen, president of CareerBuilder North America, said job seekers need to act on opportunities now, before the limited number of positions are filled. The majority of seasonal applications are accepted during October and November.

Jessica Jordan Paret, owner of Paradigm, a clothing store in downtown Annapolis, said she's already found a couple of extra associates to help during the holidays. Though the economy has been a wet blanket for retail industrywide, Paret said she and many other small business owners downtown couldn't manage without holiday season hires.

With Black Friday, the big day for sales the day after Thanksgiving, and Midnight Madness, a downtown shopping and entertainment event in December, stores will be busy, even if patronage is relatively slow compared to years when the financial picture was stronger.

"We still hired people last year primarily because our busy events are always busy," Paret said. "We've always hired because we prefer to be prepared."