Aurelia Butler

NEW YORK (Reuters) -U.S. retailers will hire the lowest number of seasonal workers for this holiday season since 2008, due to increased labor costs and shaky consumer confidence, according to a report by Challenger, Gray & Christmas provided exclusively to Reuters.Retailers are expected to add just 410,000 seasonal jobs this season, according to an analysis of nonseasonally adjusted data from the Bureau of Labor Statistics (BLS) by the global outplacement and executive coaching firm. That is just slightly above the 324,900 workers they added during the last quarter of the financial recession of 2008. U.S. retailers added 519,400 jobs in the last quarter of 2022, a 26% decline from the same period in 2021.Holiday sales are estimated to grow at their slowest pace in five years as dwindling household savings and worries over the economy prompt consumers to spend judiciously, according to Deloitte.Employers are already showing signs of hesitancy in hiring as the labor market starts to cool following a three-year period of tightness. U.S.-based companies have so far announced just 8,000 planned hires for the holiday season, compared with the 258,201 planned hires announced by employers by this point in 2022, according to Challenger, Gray & Christmas’ tracking.”We have never gone this far into September and not had big hiring predictions from retailers,” said Andrew Challenger, senior vice president at Challenger, Gray & Christmas. “It’s really surprising”, he said adding that it signals uncertainty and lower seasonal hiring trends this year. The Challenger review does not include all retail companies. It did not include U.S. grocery chain Kroger (NYSE:KR), which said it plans to hire “thousands” of seasonal workers, and Bath & Body Works (NYSE:BBWI), which it does not track.Challenger said it will include Kroger in an updated version of the report in the coming days once more retailers make announcements. Still, the current seasonal hiring announcements remain far short of what was seen at this time in 2022.1-800-Flowers.com on Thursday said it plans to hire more than 8,000 seasonal workers across its family of brands, including Harry & David and The Popcorn Factory.The gifting company is seeking to fill positions in “critical areas” such as production and gift assembly, contact center, distribution, and fulfillment center operations. The majority of roles will be offered in cities like Atlanta and in the states of Illinois, Ohio, and Oregon, it said. Bath & Body Works said it would offer flexible work hours, a $500 associate referral bonus and a 40% store-wide discount to the 2,500 seasonal employees it is looking to hire at its four Ohio-based distribution centers. The roles it seeks to fill include merchandise processors, merchandise handlers, outbound loaders and high-lift operators, the company told Reuters.The retailer – which sells soaps, body lotions and candles – plans to hire about 30,000 seasonal sales associates for its United States and Canada stores, the same as last year, the company added. “All of the roles are seasonal with the potential for longer-term employment,” a spokesperson said. U.S. grocery chain Kroger Co said it would hire “thousands” of workers for the holidays, which traditionally begins on Thanksgiving and ends on Christmas day, but has been starting earlier every year. The company, which is in the midst of a merger with Albertsons (NYSE:ACI) Inc that could add even more staff, did not disclose a number on the holiday staff it would hire. The retailer is looking to fill positions in areas including retail, e-commerce, manufacturing, supply chain and healthcare. More

(Reuters) – Delta Air Lines (NYSE:DAL) said on Thursday in the near term it is expecting a minimal hit from recently disclosed quality issues with RTX’s Pratt & Whitney engines but added it was yet to fully assess the impact.The airline expects a more detailed assessment from Pratt & Whitney at the end of this month, Delta’s finance chief Dan Janki said during a conference organized by Morgan Stanley.Earlier this week, RTX said it would have to pull 600 to 700 of its Pratt & Whitney Geared Turbofan (GTF) engines from Airbus A320neo jets for quality inspections over the next three years.The problem arose due to a powder metal defect that can lead to cracks in some Pratt & Whitney engine components. RTX initially estimated repair work per engine to last 60 days, but it is now expected to take up to 300 days.Speaking about the impact, Janki said “I think (it) will be minimal at this point, but we got to assess it.””You got to look at the secondary impacts as it relates to new deliveries, other knock-on effects in a supply chain that continues to be fragile in nature.”Delta had taken delivery of Airbus A321neos “later in the cycle” and will end 2023 with just under 50 neos, Janki added. Shares of the carrier fell nearly 1% during market hours after rising over 2% before the bell.The airline raised its current-quarter revenue forecast earlier in the day as Americans’ thirst for travel to Europe lifted demand for lucrative transatlantic flights.The carrier said it expects third-quarter revenue to rise within the upper half of its forecast range of 11% to 14% growth.However, it slashed its quarterly forecasts for operating margin and profit as extended oil production cuts by Russia and Saudi Arabia drove the airline’s fuel expenses higher. The carrier now expects a profit of $1.85 to $2.05 per share in the third quarter, down from its prior forecast of $2.20 to $2.50 per share. (This story has been corrected to say A321neos, not A320neos, in paragraph 7) More

OTTAWA (Reuters) – Canadian Trade Minister Mary Ng is postponing a trade mission to India planned for October, an official said on Friday, reflecting increasingly tense diplomatic relations just days after India’s prime minister scolded his Canadian counterpart at a G20 summit in New Delhi. “At this time, we are postponing the upcoming trade mission to India,” said Shanti Cosentino, a spokesperson for the minister, without giving a reason.Indian Prime Minister Narendra Modi, who held formal bilateral meetings with many world leaders during the G20 summit, snubbed Canadian Prime Minister Justin Trudeau, allowing only a short, informal meeting on the sidelines five days ago.Canada has the highest population of Sikhs outside their home state of Punjab in India, and the country has been the site of many protests that have irked India.”They are promoting secessionism and inciting violence against Indian diplomats, damaging diplomatic premises and threatening the Indian community in Canada and their places of worship,” India’s government said after the leaders met.Earlier on Friday, India said it had paused trade talks with Canada. Canada made a similar announcement earlier this month, saying such a pause was needed to “take stock”. Only about four months ago the two nations said they aimed to seal an initial trade agreement this year. More

However, expectations for the November meeting suggest a shift in sentiment, as 30% of traders have factored in a potential increase in rates. This change in outlook is largely due to positive economic data indicating a robust economy, reducing the need for future rate cuts. As a result, risk markets and stocks have benefitted from this favorable economic climate.The long-term trajectory of the Federal Reserve’s benchmark rate, the Fed funds rate, through September 2027 is also under scrutiny. Despite a minor uptick in near-term expectations, there’s a prevailing belief that the Fed might not be done with rate adjustments. An additional increase of 25 to 50 basis points is considered possible before a downward turn begins, indicating anticipated rate cuts starting in 2024.The Citi economic surprise index, which tracks data surprises relative to market expectations dating back to 2003, shows elevated levels compared to historical data. The current economic climate is seen as a ‘Goldilocks’ situation – not too hot or too cold – leading traders to believe that the Fed doesn’t need to intervene too much under these conditions. They also do not foresee a recession anytime soon.However, should an unexpected recession or negative event occur, traders anticipate a significant repricing of risk. In this context, bank reserves and their correlation with the S&P 500 are being closely monitored. Despite the S&P 500 climbing significantly over recent quarters, bank reserves have remained relatively flat, raising questions about whether this gap will close.The Federal Reserve’s total balance sheet is nearing $8 trillion, down from approximately $9.5 trillion. This decrease is seen as a substantial drag on the economy. The Fed’s stance on quantitative tightening and its impact on the economy are expected to be key topics of discussion during the upcoming meeting.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

The BTFP was designed to offer additional liquidity to financial institutions during periods of economic stress. It provides loans of up to one year against collateral such as Treasurys, agency and mortgage-backed securities. The program is geared towards preventing financial institutions from hastily offloading securities and is accessible to federally insured banks, savings associations, credit unions, and U.S. branches of foreign banks.The BTFP was introduced on March 12, in line with the closure of New York’s Signature Bank (OTC:SBNY) by regulatory authorities. This action followed the collapse of California’s Silicon Valley Bank two days earlier, which was triggered by a forced portfolio sale that resulted in a loss of approximately $1.8 billion.The consistent rise in the usage of the BTFP facility can be ascribed to its appeal as an attractive financing option compared to the Fed’s discount window. While this increase in borrowing indicates a heightened need for liquidity among banks, it does not necessarily signal new problems within the banking system. Instead, it mirrors the current situation where maintaining deposits is becoming more expensive and banks are striving to manage these costs.Last Friday, market observers were awaiting this Wednesday’s policy announcement from the Federal Reserve. Treasury yields across three- to 30-year terms experienced slight increases in afternoon trading while all three major U.S. stock indexes recorded declines.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

Receive free The Long View updatesWe’ll send you a myFT Daily Digest email rounding up the latest More

Receive free EU trade updatesWe’ll send you a myFT Daily Digest email rounding up the latest More