For the 2026 holiday period, U.S. retailers are adjusting their hiring strategies by reducing seasonal positions and becoming more selective, as leading firms respond to ongoing economic challenges with greater caution.
Uncertainty Drives Retailers to Limit Seasonal Job Increases
According to the latest analysis from Challenger, Gray & Christmas, only about 450,000 seasonal retail positions are expected in the fourth quarter—representing a 2.5% decrease compared to the 461,500 roles added during the same period in 2025. This reduction signals a noticeable trend, with major retailers choosing not to publicize their hiring goals early, instead focusing on nimble teams and workers available on-demand rather than large pre-holiday onboarding.
Unlike previous years, few companies have shared 2026 hiring intentions, reflecting the report’s observation that businesses are hesitating to set significant targets long in advance. This quiet approach to announcements aligns with a pattern visible since 2025, a year that experienced the lowest seasonal retail job growth since 2008. In 2025, seasonal retail hiring was 15% lower than the 543,100 positions filled in late 2024, based on Challenger’s Bureau of Labor Statistics review.
Leading Retailers Continue Careful Holiday Staffing
Typically, large retail chains would have already revealed their holiday workforce goals. However, this year, many are following the flexible staffing approach introduced in 2024, which prioritizes adaptability over headline recruitment figures. Andy Challenger, chief revenue officer and workplace analyst, attributed this shift to factors like increased prices, tariffs, and elevated energy expenses, all creating added pressure on hiring choices. He added: “Rather than the massive 900,000-plus seasonal campaigns from 2020 and 2021, today’s focus is on specific and targeted staffing levels.” Ongoing inflation—which, despite a 1.2% uptick in retail sales during August, has failed to spark strong early hiring activity—may also lead to more conservative consumer spending as 2026 progresses.
The report noted, “Almost every hiring announcement we’ve seen in the last three years is smaller and more surgical than the pre-pandemic playbook. Even if the big names come in at last year’s numbers, the total will likely fall well short of the 2019–2021 peaks.” Despite this tendency, several exceptions exist. Spirit Halloween, for example, revealed in June a plan to recruit over 52,000 seasonal staff for more than 1,500 stores in the U.S. and Canada—its largest hiring effort yet. Michaels announced intentions to add over 10,000 people to its seasonal teams; notably, nearly half the store’s holiday hires last year transitioned to permanent employment. Bass Pro Shops and Cabela’s are preparing to conduct a national hiring event this October as well.
Retail Giants Stay Silent, Staffing Waves Remain Small
As of now, other top retailers are holding back on releasing 2026 seasonal hiring announcements. Amazon, which brought on 250,000 seasonal workers for each of the last three years and usually shares updates by mid-October, has so far disclosed only a minimum wage increase in September. Bath & Body Works, despite regularly adding close to 30,000 seasonal staffers in the previous three years and being an early-September announcer, has made no announcements for 2026. Target, which typically employs around 100,000 additional seasonal workers at over 2,000 locations, and Kohl’s, which typically hovers near 90,000 extra hires per season, have both begun hiring for the year but have not yet stated official goals.
This August, the Bureau of Labor Statistics reported 15.47 million employed in retail, which is a 63,000 year-over-year increase from August 2025, per Challenger data. This figure tends to dip in September as students return to school, before ramping up again for the end-of-year surge.
Retail Employment Trends Highlight Precision Hiring
Most leading retailers are choosing to staff more flexibly and delay decisions about workforce expansion until closer to the busiest times, focusing on operational efficiency over broad seasonal drives. “Retailers are pulling back from the broad hiring campaigns of years past and focusing on a more surgical approach,” Challenger concluded.