Last year seemed like another of unrelenting layoffs, but ten large companies added, in total, more than 200,000 jobs, according to Challenger, Gray & Christmas. Most of this increase in employment was in the retail industry, oddly enough. This sector was among the most seriously affected after the disastrous holiday season sales in 2008 and 2009.
It appeared around Thanksgiving that retail sales in 2010 would improve. The National Retail Federation forecast a 3.3% rise in total retail sales in November and December compared to the same months in 2009. That number excluded e-commerce sales. Several research firms which cover online retail operations set expectations for a 15% improvement in the last two months of 2010. Final sales figures show that each of these projections was fairly accurate.
Some retailers released disappointing December results, demonstrating that the recovery was uneven. That could cause some companies which added people in 2010 to cut them early this year. The only government agency which added many workers was the US Census Bureau. These jobs were temporary, unfortunately. Most are gone now that the 2010 Census is over.
Much of last year’s major hiring happened in November and December. This may be because of a sharp increase in business confidence. The bill extending tax benefits passed late in 2010 helped this trend. The problems of unemployment and lack of access to capital have not gone away. The recovery is choppy. The question now is whether the positive momentum will continue through 2011.
It will be telling if the great majority of these people still have their jobs as the year progresses. Here are the 10 single largest job additions by company:
1. Macy’s (NYSE: M)
>Jobs Added: 65,000
The large retail operation added 65,000 jobs in its stores, distribution centers, call centers, and online fulfillment centers. Many of the additions were described as temporary. Total sales for Macy’s increased 4.5% in December to $4.62 billion, but were short of Wall Street’s expectations. That makes it less likely that the company will retain many of the people it hired.
2. UPS (NYSE: UPS)
>Jobs Added: 50,000
The largest air and ground transportation company added 50,000 jobs for the holidays. UPS said that some of the workers might keep their positions after year-end. The shipping business probably did well during the holidays. UPS and competitor FedEx (NYSE: FDX) each trades near 52-week highs, a sign that Wall St. believe the holidays went well and that this success should continue into 2011.
3. Kohl’s (NYSE: KSS)
>Jobs Added: 40,000
The low-end retail company added 40,000 jobs for the holidays, many of them probably temporary. “This holiday, we’re pleased to create tens of thousands of jobs across the country to serve our customers during this exciting time of year,” said John Worthington, Kohl’s senior executive vice president, in a press release. Good sales results for the company mean that some of these workers may be retained. Kohl’s December sales were up 5.9%, due in part to its e-commerce success.
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4. JC Penney (NYSE: JCP)
>Jobs Added: 30,000
Another department store company which hoped the holidays would boost its financial performance for the year, JC Penney added 30,000 people. The firm’s December same-store sales were up only 3.3% which may not be enough for most of the new workers to keep their jobs.
5. Best Buy (NYSE: BBY)
>Jobs Added: 30,000
The largest consumer electronics chain in the US added 29,000 people, many of them for the holidays. This may be the American retailer least likely to keep those workers it added at the end of 2010. Best Buy said it had missed its quarterly targets for the month that ended in October and added that the holiday season would not be better. The firm’s shares were punished and it is likely employees will share in that.
6. American Eagle Outfitters (NYSE: AEO)
>Jobs Added: 15,500
American Eagle added 15,500 workers. It is another retail company that had weak holiday sales. There is also a rumor that the company will be bought out which often means that employees lose jobs in a consolidation.
7. Starwood Hotels (NYSE: HOT)
>Jobs Added: 12,000
The hotel and resort operator added 12,000 employees in 2010 and those people are likely to hold their jobs. The high-end chain has rebounded quickly from the recession. Starwood announced the opening of dozens of new locations over the last year. The company also said it would hit its financial guidance numbers for 2010 and expressed optimism for the New Year.
Also Read: The Ten States With Miraculous Recoveries in Unemployment
8. US Census Bureau.
>Jobs Added: 10,000
The government agency added 10,000 people early last year to aid in the 2010 Census. Many of the jobs were low paid as these workers went door-to-door to check on people who had not answered Census questionnaires or to check on the answers from those who did. Almost all these people have already been laid off now that the work is over.
9. Hickory Farms
>Jobs Added: 4,000
The maker of holiday gift baskets added 4,000 seasonal workers. There has been no announcement about how many of these people were retained, but the firm’s business peaks at year-end, so probably not many.
10. Bank of America (NYSE: BAC)
>Jobs Added: 3,600
The bank and financial services industries shed tens of thousands of jobs during and after the credit crisis. Earnings growth has returned for most of the large companies in the sector. Many of these new jobs were created to help the bank process mortgages for modifications and, sometimes, foreclosures. The real estate market is bad enough that this kind of job additions at banks will continue, unfortunately for home owners
Douglas A. McIntyre
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