Holiday Season Hiring May Hit Lowest Level in 16 Years

Chris Andersen
Published Sep 29, 2025


The final months of the year are usually a busy time for the U.S. economy.

Companies often hire extra workers to handle the rush from holidays like Thanksgiving and big shopping events such as Black Friday. This seasonal boost in jobs helps to drive spending and economic growth.

This year, however, things look different. Experts warn that companies may hire far fewer temporary workers than usual—possibly the lowest number in 16 years.
 

What’s Causing the Drop in Holiday Hiring?


The employment firm Challenger, Gray & Christmas says there are several reasons for this change:
 
  • Inflation: Prices are rising, which makes everything more expensive for both businesses and shoppers.
  • Tariffs: Companies are having to pay extra fees on imported goods, which increases costs.
  • Technology and automation: Businesses are using more machines and software, so they don’t need as many extra workers.

In fact, the firm says this expected decline in seasonal jobs will be the largest since 2009, when the country was still recovering from the financial crisis.

Andy Challenger, vice president of Challenger, Gray & Christmas, said many companies are relying more on their current staff and technology, instead of hiring lots of seasonal workers.
 

Hiring Numbers Are Already Low


The job market has already shown signs of weakness. In August, only 22,000 new jobs were created—much lower than experts predicted.

Inflation is also staying high, as shown by the Consumer Price Index going from 2.3% in March to 2.6% in August.

During the third quarter of this year, companies hired 543,000 seasonal workers, which is only a small increase (4%) compared to last year.

For the rest of the year, experts think only about 500,000 temporary jobs will be added, which is unusually low.
 

Spending Is Down, Too


Higher prices are causing shoppers to spend less. A University of Michigan survey found that most adults plan to avoid buying products that have become more expensive because of tariffs.

For example, audio equipment is now 12% more expensive, and household goods cost 10% more than last year. This means stores may earn less during the usual holiday shopping boom.

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