Applications for holiday retail jobs surging
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Weak recovery won’t spur jobs, Fed warns Unemployment likely will remain high for the next several years because the economic recovery won't be strong enough to spur robust hiring, Federal Reserve officials warned Tuesday. |
John Challenger, chief executive of Chicago-based outplacement firm Challenger, Gray & Christmas, noted that holiday hiring will fall significantly below last year's total, which was the lowest since 2003. And those with pink slips shouldn't count on new job opportunities even after the holidays, since even more retailers are expected to file for bankruptcy.
The U.S. retail industry alone shed 38,100 jobs in October, bringing the total since January to 297,000, according to Michael P. Niemira, chief economist at the International Council of Shopping Centers. That accounts for 25 percent of the 1.2 million jobs lost in the U.S. so far this year. Yet retail employment only accounted for about 11 percent of total payroll employment — meaning the retail industry is losing a higher proportion of its jobs.
Such retail losses have helped push the nation's unemployment rate to a 14-year high of 6.5 percent in October as another 240,000 jobs overall were cut last month, according to government data released Friday. And many economists believe the unemployment rate will climb to 8 percent or 8.5 percent by the end of next year.
As far back as September, Bealls Outlet Stores — which operates most of its 450 stores in Florida — was being flooded with up to 40 to 50 applicants a week, said Conrad Szymanski, president of the Bradenton, Fla.-based chain. A year ago, they saw one or two applicants a week per store. Each store hires about 10 part-time holiday workers — meaning that about 450 applicants are competing for 10 jobs per store. Those are tougher odds than Harvard, which accepted about 7 percent of all applicants for the class of 2012.
"What we are seeing is a profound increase," particularly in Florida, California, and Arizona, where the real estate market has been hit hard, said Szymanski.
What's so striking, store executives say, is how desperate the applicants are.
Rob Duncan, chief operating officer of Alpine Access, a "virtual" call center provider with 7,500 employees working from their homes across the country, estimated a 10 to 15 percent rise in applicants from a year ago. In the past, they were mostly stay-at-home moms looking for part-time work. Now the company, which handles customer service for stores like J. Crew as well as tech support, debt collection and financial services, is seeing more men and more midlevel managers looking for at least 35 hours of work.
"They are looking for replacement income; instead of supplemental income," Duncan said.
David Ortega, a training store manager at the 7-Eleven in Citrus Heights, Calif., that got more than 100 applications, noted that many applicants have management experience — including those who even owned their own construction business.
The store in a suburb of Sacramento, which has been hard hit by the housing slump, usually saw candidates who came straight out of high school, he said.
Ortega also noted that job candidates are doing more follow-ups. One applicant — a former manager in cosmetics at Macy's — even wrote him a thank you note for discussing the $8.50 per hour job.
"You expect to see that for a higher-level position, like an executive," he said.
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