For Immediate Release
September 25, 2002

LANSING — Michigan retailers expect it will be easier to hire employees this holiday season, but more plan to cut back than expand their seasonal workforce.

The Michigan Retail Index, a joint project of the Michigan Retailers Association (MRA) and Federal Reserve Bank of Chicago, found that 64 percent believe the holiday labor pool will be larger this year than last. But only 2 percent plan to hire more holiday workers, while 17 percent expect to hire fewer and 81 percent hire the same number.

The Index also found August sales wilted in the late summer heat, although retailers’ optimism for fall sales rebounded slightly.

Thirty-seven percent reported increased sales for August, compared to a year ago, while 51 percent said sales declined and 12 percent reported no change. The results create a seasonally adjusted performance index of 40.1, down from 48.3 in July and the lowest since last September.

Sixty-two percent project September-November sales will increase over the same period last year. When combined with the 21 percent who project level sales and 17 percent who predict a falloff, the results create a seasonally adjusted outlook index of 68.7—up from 66.2 in July.

"Retailers continue to approach the holiday season with cautious optimism," said Larry Meyer, MRA chairman and CEO. "At this point, the majority of stores are planning to keep inventory and hiring at last year’s levels."

The Michigan Retailers Association is the unified voice of retailing in Michigan and the nation’s largest state trade association of general merchandise retailers. MRA’s more than 5,700 retail business members operate more than 12,000 stores across the state.

Note: William Strauss, Senior Economist and Economic Advisor with the Federal Reserve Bank of Chicago, can be reached at 312.322.8151.