Amazon announced on Monday its plans to hire 250,000 seasonal workers for the upcoming holiday season, matching the hiring levels of the previous two years. This recruitment will encompass both full and part-time roles across its fulfillment and transportation operations throughout the United States. The company confirmed that these temporary positions will offer an average wage of $19 per hour, as detailed in a blog post. Analysts often interpret Amazon’s holiday hiring projections as a barometer for the retailer’s expectations regarding consumer activity during the bustling November and December shopping months.
Interestingly, while Amazon is maintaining its seasonal hiring numbers, the overall landscape appears less robust this year. A report from Challenger, Gray & Christmas indicates that holiday hiring across the retail sector is projected to decline to its lowest level since 2009. The firm noted a scarcity of major retailers announcing hiring plans as of mid-September, highlighting a trend that includes several influencing factors. Andy Challenger, the firm’s senior vice president, pointed out challenges such as looming tariffs, persistent inflationary pressures, and a shift towards automation and a reliance on permanent staff, reducing the need for temporary seasonal workers.
The hiring announcement follows Amazon’s recent Prime Big Deals Days, a promotional event that serves as a fall counterpart to its summer Prime Day sales. As this holiday season approaches, analysts are cautiously predicting a more challenging environment for retailers. Consumers are increasingly concerned about tariffs and broader economic conditions, leading to a forecasted 5.3% year-over-year growth in total U.S. online sales during the holiday period, down from around 8% growth in 2024.
On the stock market front, Amazon’s shares experienced a 1.9% increase, trading at $220.38. Despite this uptick, Amazon’s stock performance remains below the S&P 500, with less than a 1% overall gain year-to-date. Recent concerns surrounding tariffs and fierce competition in the AI-driven cloud sector have affected its stock price. Following President Donald Trump’s indications of potential new tariffs on Chinese imports, Amazon’s shares plummeted by 5% on Friday, although Monday’s gains indicated a recovery from the 200-day moving average.
Looking ahead, Amazon is set to report its third-quarter earnings later this month, which is expected to provide more clarity on its outlook for the remainder of the year. Piper Sandler analyst Thomas Champion, in a note to clients, expressed an optimistic perspective on the future performance of Amazon, mentioning supportive survey data for the company’s cloud operations. He noted expectations that Amazon’s investment in the AI startup Anthropic could bolster its cloud segment, encouraging a buy rating despite the challenges faced thus far.
