Seasonal Jobs Shift to Fulfillment Centers as Consumers Shop Online | PYMNTS.com

Seasonal jobs are reportedly shifting from retail stores to eCommerce fulfillment centers as businesses respond to consumers’ changing holiday shopping habits.

While the number of seasonal jobs at retailers dropped from 564,000 last year to 520,000 this year, Amazon added 250,000 seasonal positions and UPS added 125,000, CNBC reported Tuesday (Dec. 24).

The roles at Amazon and UPS are generally focused on fulfillment and delivery of online orders, according to the report.

This shift in employment came as consumers continued doing more of their holiday shopping online. This year, three-quarters of American shoppers plan to buy at least half their gifts online, the report said, citing data from Challenger, Gray & Christmas.

Consumers are expected to continue this trend, with the retail sector forecast to shrink by 0.2% each year over the next decade, per the report.

Some 450,000 jobs are expected to be created by online shopping in the U.S. by 2026, according to the report.

The latest data from the U.S. Census Bureau showed eCommerce sales in November rebounding from a tepid pace in October as consumers filled up their online carts for gift-giving, PYMNTS reported Dec. 17.

While overall retail sales surged 0.7% in November — ahead of a consensus forecast of 0.6% — the non-store retailer category, which includes eCommerce sales, was 1.8% higher.

During this year’s Black Friday, 72% of shoppers made at least some purchases online, while only 28% of consumers shopped exclusively in stores, according to the PYMNTS Intelligence publication, “Black Friday 2024 Report: Sales, Not Sentiment, Drives Black Friday Turnout.”

The report found that in-store shopping remains significant but supplements online shopping. Fifty-six percent of consumers visited physical stores during Black Friday — a figure that was down from 57% in 2023 and 62% in 2022.

In terms of seasonal jobs, Target said in September that it planned to hire roughly 100,000 workers for the holiday shopping season — a number that was in line with last year’s hiring levels.

These openings are for the retailer’s stores and supply chain facilities, Target said, noting the need for workers to support order pickup, drive-up and product stocking needs.