Retailers Will Cut Seasonal Hiring for Fourth Quarter

Job seekers will find fewer temporary positions this year as retailers lean on automation and existing staff to manage holiday demand.

Updated on Sept. 22, 2026 in Employment

Isometric editorial illustration of a clean warehouse rack system with empty storage bins and robotic arms, representing automated retail workforce efficiency. — Major U.S. retailers are reducing seasonal holiday hiring for 2026, opting to leverage automation and existing staff instead of massive temporary labor expansions. AI Illustration. Upload story photo >

Live Poll

Do you expect the shift toward automation in retail to affect your holiday shopping this year?

Retailers are expected to hire fewer than 450,000 seasonal workers for the fourth quarter of 2026, marking a continued downward trend in temporary holiday staffing. This shift follows a 15% decline in seasonal retail hiring between 2024 and 2025.

Why it matters

Higher operational costs and a strategic pivot toward year-round staff and robotics have led companies to abandon large seasonal hiring waves. Households relying on temporary holiday income may face a more competitive labor market than in previous years.

Retailers added 461,500 seasonal jobs in 2025, a 15% drop from the 543,100 added in 2024. With retail employment reaching 15.47 million in August 2026, firms are now prioritizing surgical staffing and automation over massive temporary hiring surges.

The players

Michaels

A national arts and crafts retailer that plans to onboard 10,000 seasonal employees for the 2026 holiday season.

Bass Pro Shops and Cabela's

Outdoor recreation retailers that manage nationwide inventory and consumer staffing via scheduled hiring events.

The details

Companies are increasingly managing fluctuating holiday demand by optimizing existing workforce schedules rather than bringing on large temporary cohorts. Many firms have integrated robotics and on-demand labor pools to handle seasonal peaks while mitigating the impact of supply chain tariffs. This surgical approach to staffing is intended to manage high prices and maintain efficiency throughout the busy fourth-quarter season.

Q4 2024: 543,100 seasonal retail jobs were added.
Q4 2025: 461,500 retail and 266,500 transportation jobs were added.
August 2026: Total retail employment reached 15.47 million.
October 7-8, 2026: Bass Pro Shops and Cabela's will hold a national hiring event.
Q4 2026: Seasonal retail hiring is projected to fall below 450,000 positions.

Money Landscape

The retail industry is extending the contraction pattern established in 2025, moving further away from historic reliance on high-volume seasonal staffing. This shift reflects a broader structural change as retailers prioritize permanent staff and automation over the traditional holiday hiring model.

Households looking for supplemental holiday income should initiate their job search earlier than in previous years as the total number of available temporary roles continues to shrink. Please discuss your individual budget needs and the potential for temporary earnings with a qualified financial professional.

The takeaway

Retailers are permanently changing how they manage peak demand by favoring automation over temporary headcount. Keep a close watch on your local retail job boards starting in early October to identify the shrinking window for seasonal employment opportunities.