Demand for seasonal workers in the United States, including professional Santa Claus performers, has reportedly decreased this year, prompting discussions about potential implications for the broader economy. This trend aligns with projections of the lowest holiday retail hiring levels since 2009 and coincides with a reported slowdown in the overall labor market. Economic assessments are complicated by mixed signals and past delays in official reports, leading some to consider seasonal hiring trends as a potential indicator of broader economic shifts.
Declining Demand for Seasonal Workers
American retailers traditionally hire approximately 500,000 temporary workers each year for the holiday shopping season. These positions typically include roles such as cashiers, gift wrappers, sales associates, merchandisers, warehouse staff, and delivery drivers. Professional Santa Claus performers represent a specific segment of this seasonal workforce, appearing at commercial venues and private events leading up to December 25th. This year, a notable decline in demand for seasonal workers, including professional Santas, has been observed.
Trends in the Professional Santa Market
Mitch Allen, founder of Hire Santa, an agency that provides Santas nationally and internationally, estimates there are between 9,000 and 10,000 professional or semi-professional Santas in the United States. The primary season for Santa bookings typically begins in early November, intensifies on December weekends, and peaks in the week before Christmas.
Hire Santa has reported a significant decrease in demand for Santa visits this season. Allen stated that inquiries to book Santa events are down nearly 27% year-to-date compared to the previous year, which itself had seen a decline from the year prior.
Allen has theorized that economic conditions might affect different segments of the professional Santa market differently. He suggests that while demand for Santa appearances in commercial settings, such as malls, might remain more stable as a customer attraction strategy, demand for private events like company parties or home visits is more susceptible to economic downturns, as these are often viewed as non-essential expenditures. Hire Santa's data indicates that the observed decline primarily originates from fewer requests for Santa at private holiday parties and events. Allen suggests this decline is due to consumers and companies reducing expenditures on discretionary services, potentially influenced by recent layoff announcements and high consumer credit card debt.
Broader Seasonal Hiring Landscape
The observed decrease in Santa demand aligns with broader trends in seasonal worker hiring. In late September, the human-resources firm Challenger, Gray, & Christmas projected that holiday retail hiring this season would reach its lowest level since 2009, a period following a recession. Andrew Challenger, a senior vice president at the firm, indicated that the market for seasonal workers has not improved since their projection and noted a reported worsening in the broader labor market. This includes an identified increase in company layoff announcements in November, affecting sectors such as online retail (e.g., Amazon) and delivery services (e.g., UPS).
Indeed Hiring Lab, utilizing data from the job site Indeed, has also reported a slowdown in the seasonal job market. Cory Stahle, a senior economist at Indeed Hiring Lab, characterized the current seasonal hiring situation as a reflection of a cooling and slowing broader labor market.
Economic Context and Potential Indicators
The National Bureau of Economic Research (NBER) defines a recession as "a significant decline in economic activity that is spread across the economy and lasts more than a few months." Current economic assessments face challenges due to mixed economic signals and past delays or cancellations of official economic reports. The trend in seasonal worker demand, including professional Santas, has been presented as one potential indicator of broader economic shifts.
While Hire Santa, established in 2012 (after the Great Recession), lacks direct historical data on Santa demand during past recessions, a significant reduction in professional Santa appearances could potentially serve as a signal of economic contraction.
One contributing factor to the shift in retail hiring, independent of immediate economic downturns, is the ongoing structural change toward increased online shopping, which can impact staffing needs for traditional brick-and-mortar retailers.
Current Outlook
Despite the overall decrease in demand for professional Santas, requests for bookings continue to be received. This suggests that professional Santas will remain available, though potentially at fewer locations or times this holiday season.