Sept 18 (Reuters) – Macy’s (M.N) said on Monday it would hire more than 38,000 full and part-time workers for the upcoming holiday season – fewer than last year – as the U.S. department store gears up for the busy shopping period.

Companies have been grappling with weak consumer sentiment and increased labor costs even as the U.S. labor market has shown signs of easing.

Macy’s had last year said it would hire about 41,000 employees. It hired around 76,000 workers in 2021.

The company is looking to hire for its Macy’s, Bloomingdale’s and Bluemercury stores, as well as its distribution centers.

A report by Challenger, Gray & Christmas revealed U.S. retailers would hire the lowest number of seasonal workers this year since 2008. Planned holiday hires announced so far were much lower than in 2022, it said.

U.S. holiday sales this year are expected to grow at their slowest pace in five years, as consumers spend cautiously due to shrinking household savings and lingering worries over the economy.

Gifting company 1-800-Flowers.com (FLWS.O) last week announced plans to hire more than 8,000 seasonal workers across its store banners while Kroger (KR.N) said it would “hire thousands of associates”.

Some companies such as Bath & Body Works (BBWI.N) are also offering perks to attract more employees for the holidays. The company 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.

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