October 06, 2025
Retailers’ Holiday Wish? Enough Staff to Serve the Surge
The tinsel isn’t up yet, but for U.S. retailers, the holiday hustle has already begun, and so has the stress. Store leaders are entering the season hopeful for booming sales but anxious about a challenge that’s becoming as traditional as the Black Friday rush, and that is finding enough people to work.
Last year’s holiday outlook already hinted at trouble ahead. As reported by Indeed, seasonal hiring in 2024 proved slower than expected despite growing interest from job seekers. Senior economist Jack Kennedy noted that while employers were preparing for the busy Christmas trading period, the ramp-up was more cautious than in previous years, likely due to economic uncertainty. Experts also warned that those hoping to boost their income over the holidays faced limited options.
Staffing Blocks
According to the UKG Retail Holiday Hiring Survey, nearly 60% of retailers started recruiting in September or earlier, racing to fill shifts before competitors do. Many did so because they expect stronger sales than last year, and 69% anticipate more in-store traffic, yet most admit they’ll be short-staffed when the crowds arrive.
Seventy-eight percent have struggled to plug staffing gaps in recent months, and 77% predict the same problem will persist through the holidays. Many expect to be understaffed at least two days a week, a scenario that could mean longer lines, slower service, and frazzled employees trying to do more with less.
High turnover is just one of the staffing difficulties. Nearly half of retailers say it’s worsened this year, with weekly attrition chipping away at teams. Pay and scheduling inflexibility continue to drive resignations, while burnout, reported by 77% of retail associates, pushes many to leave altogether.
AI to the Rescue
To keep stores running smoothly, more retailers are turning to AI. The survey found 86% already use AI-powered tools to manage hiring, scheduling, and payroll, and just as many see even greater potential ahead. Early data suggests that employees using AI experience less burnout, which suggests that smarter systems might be key to surviving the season’s chaos.
However, retailers shouldn’t be relying on AI entirely, as Heidi Harman, Senior Industry Principal for Retail and Hospitality at UKG, said: “Our research shows nearly two-thirds of employees view AI as a threat to their jobs. Retailers must be transparent about using AI to enhance — not replace — frontline employees. The best results happen when AI works in service of people.”
