UPS and Fedex Will Need 64,000 Additional Holiday Workers

On Monday UPS announced that its projections show it will handle more parcel deliveries this holiday season than it did last year. UPS it will deliver about 400 million packages worldwide between Thanksgiving and Christmas. Furthermore, UPS announced that it will hire 50,000 temporary workers to handle the greater volume.

Last week FedEx (FDX) also reported that it anticipates shipping more this year. FedEx said it will hire 14,000 additional part-time and temporary holiday workers.

Both UPS and FedEx are considered indicators of U.S. economic activity because their business booms and cools with the broader economy.

Post recession, labor markets usually improve first by showing a significant pickup in temporary labor, followed shortly thereafter by a return to full-time job growth.

This time is no different.

Comments

[David Van Knapp]

For the sake of this community, I don't think that anyone should present falsified data on this site, nor use toruously twisted reasoning to spin that data. But in my experience, this author presents facts accurately. He presents them selectively, in line with his mission of looking for positive news. But he doesn't lie, and his interpretations (as here) are usually reasonable.

I find his columns to be refreshing and a good counter-balance to the rampant negativity that infects so much of Seeking Alpha. There are many places one can go to read angry negativity, twisted interpretations, doomsday opinions backed up by no facts whatsoever, and sometimes outright lies presented as if they were facts. I don't always agree with this author, but I appreciate what he is trying to do and generally admire the way he goes about it.

2009 Nov 17 08:43 AM

[William M. Wright]

64,000 temp jobs is a lot better than no temp jobs. It would be interesting to know how many temp workers these two firms hired last year for the holidays. UPS 50,000 temp jobs sounds big to me.

2009 Nov 17 08:45 AM

[john s. gordon]

unfortunately UPS has a bad habit of causing repetitive motion injuries to its assembly line operations workers & then when the employee tries to file a workmens comp claim the corporation squashes the claim.
if they try to do this to you make sure you have a conference with your shop steward immediately.
> jack

2009 Nov 17 08:55 AM

[John Galt]

On Nov 17 08:45 AM William M. Wright wrote:

> 64,000 temp jobs is a lot better than no temp jobs. It would be interesting
> to know how many temp workers these two firms hired last year for
> the holidays. UPS 50,000 temp jobs sounds big to me.

Exactly.

UPS & Fed Ex bring in 64,000 temp workers, but what if we told you they brought in 80,000 temp workers last year? I just made up the 80K number, but I doubt they brought nobody in last year, or that they didn't shed jobs since then.

Looking at only part of the puzzle HEY, WE ARE BRINGING IN 64,000 WORKERS!!! Is a dangerous thing if acted upon.

2009 Nov 17 09:25 AM

[doubleguns]

How many of those temp jobs are their own laid off workers?

How many of the extra packages are internet shoppers who will not visit retailers as much?

Just two of the many questions raised by this article.

Yes I agree this is better than no jobs but we need full employment jobs, not temp jobs, to get our butts out of the fire.

64,000 unemployed will be able to kick the can just a little further down the road. I fear for the unemployed. There is not much hope.

2009 Nov 17 09:39 AM

[jwsky]

The last improving stat in recovery is job gains. The first sign is increased temp help. Of course they hire extra people for the holidays. The important news in this artical is that " projections show it will handle more parcel deliveries this holiday season than it did last year"

Like all downturns, this one will end. People need to cheer up. I read that almost 90% of the people in this country have jobs!

2009 Nov 17 10:05 AM

[LaurenNicole]

Being happy that 90% of people are employed (which is actually closer to 80%, but I'll use your number for now) completely ignores the fact that our country needs 95% or more of the people working in order to buy all the mass produced crap in retail stores and keep the economy going... The difference may be small to you, but when you talk about income tax receipts in the billions of dollars in an economy that already spends more than it receives, going from 95% to 90% (once again, closer to 80%) does have a huge impact. People may be employed in the big picture, the way you look at it, but they are earning a LOT less money and being taxed on less income and therefore have less money to buy mass produced crap in retail stores.

I don't completely buy the 50,000 employees thing. I need to see how many were hired on for the holidays in previous years before I believe that ridiculous number. Did they hire in 100,000 employees for the 2006 holiday rush and they figure they will need half of that now? Data please.

Additionally, when the people getting hired used to make 70K a year and now they make $9.00 a hour, I guess that is good for everyone, right? UPS usually hires young people. I'm going to take notice if my UPS delivery person looks like he used to be a mortgage broker....

2009 Nov 17 04:16 PM

[William M. Wright]

L.O.L. My positive excitement about this news vanished after I read this fact as printed on the UPS hiring website. I knew these would be low paying no-benefit temp jobs but their website says it all: "Employees can expect to take home between $110.00 and $150.00 each week after deductions have been taken for taxes" Great work for a student (purhaps) but this is more proof of how traditional general labor jobs for $18 hr. have just been converted into $9 hr. temp. jobs. I believe any job is better than no job. But I do worry about the last 15 year trend of more and more companies transfering jobs overseas and replacing livable wage jobs with temp no benefits contractors. No question this makes sense for the profitability of the companies, but I'm also worried about the long-term outlook for America.

UPS Hiring Ad.
"This is a physical, fast-paced position that involves continual lifting, lowering and sliding packages that typically weigh 25 - 35 lbs. and may weigh up to 70 lbs. Part-time employees usually work 3 1/2 - 4 hours each weekday (Monday through Friday) and typically do not work on weekends or selected holidays. Seasonal & Permanent, Part-time Package Handlers receive an hourly rate of $8.50 - $9.50 or more. UPS permanent, part-time employees also receive an attractive benefits package. Please note that these opportunities are part-time only, working approximately 17 1/2 - 20 hours per week. Employees can expect to take home between $110.00 and $150.00 each week after deductions have been taken for taxes"

2009 Nov 17 04:51 PM

[The Good News Economist]

Thanks for the additional details on this William...

so running some very rough numbers...

20 hours a week
10 bucks an hour
Next 6 weeks
64000 workers
equals?

$78,800,000 gross

Surely doesn't make 78 millionaires, but buys a lot of weekly groceries for those doing without right now.

2009 Nov 18 12:51 AM