Unseasonably cool job market

If you're hoping to pad your wallet by getting a part-time job for the holidays, good luck. Retailers are planning a conservative little Christmas when it comes to hiring seasonal workers.

Forty-four of the nation's top 100 retailers say they'll hire fewer seasonal workers this year than last, according to a survey by Aon Consulting. And with more than 1 in 10 workers unemployed -- 15.7 million Americans -- competition will be fierce for the jobs that are available.

"Retailers are playing it safe," said Maryam Morse, national retail practice leader for the Hay Group, whose surveys show equally grim news for holiday hiring. "Just as consumers' confidence was shaken last year, retailers aren't going out there with full guns blazing for the holidays."

Minneapolis-based Target Corp. said it will hire fewer temporary workers this year, choosing instead to boost hours of current employees first. Last year, the retailer hired about 62,000 seasonal workers, down slightly from the previous year.

"We're giving opportunities to existing team members who may want to cross-train and add hours," Target spokeswoman Beth Hanson said. "So a cashier can train to be on the sales floor, for instance."

It's a cost-saving tactic that more retailers are using this year, as the National Retail Federation projects holiday sales will fall 1 percent.

"Up until this year, retailers didn't have to be so thoughtful," Morse said. "They could pay seasonal workers a little bit less than what they were paying full-time workers, and these temporary, less-skilled workers could fill in the gaps. Now, everyone is running so lean that they can't afford to bring in unskilled workers.

"It makes sense to transition some of these part-time workers to full time. They're already trained, they already know the culture ... plus the [retailer] is doing something possibly good for existing employees, filling their pockets with more money."

Over 7,000 retail jobs lost

In Minnesota, retail jobs account for about 11 percent of total employment, in line with the nation as a whole, according to the U.S. Bureau of Labor Statistics. In the past year, the state's retailers have shed more than 7,000 jobs, including high-profile layoffs at the corporate offices of Target and Best Buy Co. Inc. Scores of independents shuttered their stores, while national chains such as Circuit City Stores Inc., Linens 'N Things, Steve & Barry's and KB Toys closed shop for good.

In September, the month for which the state's employment data is most recent, retailers had 2.4 percent fewer workers on staff than a year earlier. And those who held on to their jobs were working two hours less per week, for an average of 27.5 hours.

It took Danielle Holloway nine months after she was laid off from Taco Bell before she landed a job at Sears. But working just 18.5 hours a week for about $270, Holloway needs a second part-time job to cover her $700 rent and other expenses. She was offered a job at Target, but had to turn it down because they couldn't be flexible enough to work around her Sears job.

"It's pretty frustrating," said Holloway, of Minneapolis. "I don't have a set schedule, so any job I do get is going to want me to be open for their schedule."

Still, the news isn't all grim. About 19 percent of retailers say they'll beef up their ranks for the holidays, according to Aon's survey.

GameStop plans to hire about 15,000 seasonal workers at minimum wage, increasing its workforce by 46 percent. Sur La Table will hire 2,000 workers, doubling its staff for the fourth quarter. Toys "R" Us has ramped up by 1,000 workers to staff its 80 freestanding pop-up toy stores.

Richfield-based Best Buy says it has hired 25,000 store workers around the country in the past 60 days. A year ago, it expected to add 16,000 to 20,000 seasonal workers. On a recent search, the company's website listed 2,400 openings nationwide, about 420 in Minnesota.

And available jobs are going fast.

The Galleria in Edina quickly filled $12-an-hour part-time jobs passing out treats and hors d'oeuvres to holiday shoppers.

"Last year we had trouble filling the shifts," said Jill Noack, the mall's vice president and general manager. "Now, people feel like if they can pick up an extra $60 to $80 on a weekend, that can make a meaningful difference."

Those looking for work will have to spread their net wider than usual, and bring their A-games to the table, said John Challenger, CEO of Chicago outplacement firm Challenger Gray & Christmas. They'll face stiff competition from the 1.8 million former wholesale and retail trade workers who are out of work, plus 9.2 million more Americans who are working part time but want full-time jobs.

Looking for signs

And perhaps their best bet for finding a job includes hitting the streets, looking for signs in store windows.

"Retailers just aren't listing jobs," said Dale Ketchum, job service manager at the Minnesota Workforce Center in Brooklyn Park. "They don't need to. When there's so many people looking, they'll just put a sign in the window and people will find them."

Ketchum said an employment site that normally lists "thousands of jobs this time of year," turned up a mere 480 openings on a recent search. The Mall of America in Bloomington listed just 28 retail jobs.

Those who do find jobs might be hired later, but keep the jobs longer, as stores string out the seasonal work through January to keep up with sales generated by gift cards and post-Christmas markdowns.

"Now there's such a big labor pool, retailers can be choosy," Challenger said. "Many of them are interviewing a lot of people and putting them on call-in lists. They're waiting until they see people in their stores before they call workers in."

Scott Anderson, senior economist at Wells Fargo & Co. in Minneapolis, said that despite the glum hiring outlook, retailers can respond quickly to changes in the business cycle should consumers open their wallets this holiday season. For now, he's not predicting measurable job creation.

"Retailers are still reeling from the last year and a half, and they're still losing jobs," Anderson said. "It won't be as easy for your teenage son or daughter coming home from college to get that temp job."

Jackie Crosby • 612-673-7335