American retailers are trying to maintain an optimistic outlook ahead of the pivotal holiday-shopping season, but are alarmed about the broader effects of the current labor shortage and pandemic-induced supply chain disruptions.
Three-quarters of U.S. retailers said shoppers expect more from stores than they can deliver due to labor shortage, according to a new survey from UKG, a workforce management company. Another 85% are anticipating that supply chain issues will further disrupt shoppers.
It s becoming increasingly obvious that job hesitation, rather than job availability, is the reason we re not seeing meaningful increase in workforce activity, Dave Gilbertson, KPG vice president, said in a statement. The null and void of available jobs will remain so long as people are unwilling to jump back in the market. The survey of 312 store managers, owners and executives found that a majority 64% predict a year-over-year decline in employment this holiday season, while another one in four predicted staffing shortages and unplanned absences that could result in daily understaffing. As a result, many stores said they were doubling down on hiring: 52% are recruiting more heavily than in years' past, including 80% that said they started the search for seasonal associates well ahead of the typical holiday hiring surges. Nearly half said they began looking for employees before September.
The problem, respondents said, is that many people are simply uninterested in working retail, whether it's because they want higher pay, are worried about contracting COVID - 19 or view the work as particularly grueling.
Businesses are also concerned about retaining good employees rather than attracting new talent. One in 10 expect employees to quit daily, while at least 84% expect workers to quit on a monthly basis.
Retailers need to know it is not just about compensation, said Gilbertson. It is about credibility and showing that you value your associates. It s about getting your workforce and making sure people feel that they are re starting a career, versus working just day to day. The survey comes after a November Labor Department report, released on Tuesday showed there were an estimated 10.4 million open positions at the end of August. Though a slight decline from the end of July, it's still a staggeringly high number; there are some 2.7 million more open jobs than unemployed Americans looking for work.
The number was exacerbated by a record 4.3 million people who quit their jobs in August, representing about 2.9% of the country's workforce, according to the Job Openings and Labor Turnover Survey JOLTS The report was released just a few days after the government's September jobs report that revealed payroll increased by just 194,000 last month, well below the 500,000 expected by Refinitiv economists.