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Highlights:
- Amazon plans to hire 250,000 seasonal workers for the year-end holidays, matching last year's hiring efforts.
- E-commerce sales are expected to grow 5% from last year, reaching $240.8 billion in the U.S.
- Broader holiday spending at stores and malls is forecasted to increase by 3.2%, while seasonal retail hires are set to decline.
Amazon (NEO:AMZN), a dominant player in the e-commerce sector, announced its plan to hire 250,000 seasonal workers for the upcoming holiday season, the same figure as last year. The Seattle-based company revealed that the majority of the temporary workforce will be assigned to transportation roles and warehouse fulfillment centers, supporting its extensive logistics network.
This announcement comes as online shopping continues to expand, with Amazon predicting a significant rise in e-commerce sales during the holiday period. The company forecasts that online holiday shopping will increase by 5% compared to last year, setting a new record of $240.8 billion in U.S. sales.
Broader Retail Sector Insights
Credit card company Mastercard (MA) has provided its own forecast, suggesting that broader holiday spending in physical stores and shopping malls will grow 3.2% from the final quarter of the previous year. This growth comes despite economic pressures such as a weakening labor market and reduced consumer savings. Retailers across the U.S. are preparing for the December holiday shopping surge amid these economic challenges, balancing consumer demand with the realities of the current economic environment.
Retail Sector Employment Trends
Amid these developments, the overall seasonal hiring trends in the retail sector have shifted. U.S. retailers are expected to bring on approximately 520,000 seasonal workers this holiday season. This figure represents a decrease from the 564,200 positions added during the previous year, reflecting potential caution among retailers in response to economic conditions.
Despite these broader trends, Amazon’s stock has performed well over the past year. The stock has risen by 48% over the last 12 months, reaching a trading price of $184.76 U.S. per share.
