Tight Labor Market Likely to Push Hourly Wages Higher This Holiday Season
Good news for those planning to get seasonal work this holiday season. A tight labor market should result in higher wages this year, according to a new report from hourly work marketplace Snag.
Employers, including retailers, hotels, and restaurants, say they expect to be filling more jobs and offering significantly higher wages than they did last year in order to attract seasonal workers in the fourth quarter.
That's according to the 2018 Annual Holiday Hiring Survey released today by Snag.
According to the Snag nationwide survey, employers expect the average hourly wage for seasonal workers to jump nearly 32%, from $11.70 in 2017 to $15.40 this year.
Retail is leading the way in expected seasonal wage growth, jumping by as much as 54%, with hospitality companies forecasting increases of 51%, and restaurant wages rising around 33%.
In addition to paying more, employers began recruiting earlier than usual in order to attract talent in the tightest labor market in nearly two decades.
With more employers saying they'll need extra workers this year (84% versus 77% in 2017), the competition for skilled hourly employees is expected to be fierce, and 86% of employers say they will struggle to fill temporary seasonal positions.
To attract workers, a majority of employers (77%) say they'll be offering perks and benefits including paid time off, training opportunities, childcare, tuition stipends, health insurance, and even transportation reimbursement.
"A growing number of hourly employers understand that having the best workers improves the customer experience and increases revenue," said Snag CEO Fabio Rosati. "In order to attract and retain the most qualified seasonal workers, many companies are stepping up their game and offering more hours and benefits, higher wages, and flexible schedules."
Additional findings from the report include:
- The number of companies that began recruiting in August or earlier more than doubled compared with last year.
- In the restaurant industry, the hottest hourly positions this holiday season will be servers, dishwashers and cashiers.
- Managing employee schedules during the holiday period is expected to be one of the biggest challenges according to 54% of employers.
- The lack of qualified workers and competition from other employers are the major challenges employers are facing as they seek to fill jobs.
- A majority of employers (62%) have increased their use of social media to recruit hourly workers this year.
Snag is a platform for hourly work, with more than 60 million active job seekers and job opportunities at 300,000 employer locations in the US and Canada. Find out more at www.snagajob.com.