Holiday hiring may be slow in 2008

CHICAGO, Sept. 15 (UPI) -- Holiday hiring for 2008 is expected to fall sharply in the United States, a private employment research group said Monday.

Researchers at Challenger, Gray & Christmas said hiring "is expected to fall well short of the 727,500 seasonal job gains averaged over the previous decade."

"This could be the weakest holiday hiring season since 2001, when retail employment grew by only 585,300 jobs, as consumer and retailer confidence plummeted in the wake of Sept. 11." The report said.

This year, retailers are being clobbered by rising shipping costs, due to rising gas prices. The weak dollar is also raising the price of imported goods, the report said.

"With profits already getting squeezed, most retailers are going to be reluctant to take on the additional cost of extra staffing," said company Chief Executive Officer John Challenger.

Seasonal hiring follows the fate of sales in general and the U.S. Commerce Department reported a sales drop of 0.3 percent in August, following a drop of 0.5 percent in July, the report noted.

"This year, there appears to be no doubt that consumers are in deep trouble and will be on strict budgets during the holidays," Challenger said.