According to a recent article published in CNNMoney.com by Aaron Smith and Ben Rooney:
Toys R Us and Best Buy announced Tuesday; that they are about to hire tens of thousands of new employees for the upcoming 2010 holiday season. Toys R Us announced it would hire 45,000 seasonal employees; Best Buy will hire 29,000 seasonal employees.
Toys R Us will divide its 45,000 new recruits between its 587 current locations and the 600 temporary locations about to open across America in various shopping centers. During the non-holiday season Toys R Us employs 45,000 and so the company is seeking to double its workforce ahead of the holiday season.
The United States is a huge retail market due to the size of the population. However the shopping habits of American consumers make the retail industry in the United States even more valuable. Americans love to shop, and what better time to shop than Christmas and Hanukkah: two major holidays with the retail enhancing traditions of giving gifts. The holiday season in the United States isn’t matched in any other country on Earth.
Furthermore, most retail companies in the United States rely on the holiday season, as it’s by far the greatest source of income. The month of December can generate as much as six months during the non-holiday periods. The significance of the holiday season is clearly seen in Toys R Us and Best Buy’s hiring announcements. Toys R Us will double it’s entire workforce as well as the company’s locations, all in the effort to sell as much toys as they can while the demand is at it’s highest point.
Moreover, Toys R Us will give many of its employees an opportunity to work extended hours and during the weekend. Therefore, many of the company’s employees will be able to save furthermore enabling them to spend money on gifts and so stimulating the economy even more.
If Toys R Us are lucky enough, a new toy may become the holiday must have leading to an even higher demand for toys.
Although I am no longer a child, this recent publication did in fact find it’s way to my heart. The combination of new job opportunities at a time where unemployment in America is nearly 10% and toys was just too irresistible.
It is true that the retail industry practically revolves around the holiday season. Usually, we focus more on what is being sold and how it affects different retailers. It was interesting to see things from the flip side for once, in the form of the labor market. It just goes to show that the holidays have more than simply a sentimental value to the people. The holidays provide seasonal jobs for laborers and seasonal profits for companies. Both of these factors affect how the money will flow through the economy. In this case, both the laborer and the employer win.
ReplyDeleteNot only does hiring extra labor for the holidays help the labor market, it also helps to improve the company's efficiency. Companies that are under a lot of pressure cannot afford to make mistakes in production. They need their company to appear at its best while the most consumer attention is focused on it. Hiring more labor ensures fewer mistakes.
Catherine Reeves
This is great news on many fronts. Not only does it give people money so they can buy presents for the holidays, but it stimulates the economy. However, I believe that many people will see this as "yay I got a job now let me go spend!" and will overspend this holiday season. So when the credit card bill comes in the mail January and February and these people are again jobless, they will not be able to pay these bills. Hopefully these seasonal employees will be smart and save some of their paycheck and spend within their means.
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