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Macy's Stock Rises After Plan to Hire 76,000 Workers

Macy's shares rise as the retail giant says it plans to hire 76,000 workers.

Macy's  (M) - Get Macy's Inc Report shares were rising Wednesday after the department store operator said it hire plans to hire about 76,000 full- and part-time workers at a time when employers are struggling with a severe labor shortage.

Shares of the New York company were rising Wednesday 4.9% to $22.65 at last check.

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Macy's made the announcement Tuesday afternoon, saying the workers would be assigned to its Macy’s, Bloomingdale’s and Bluemercury stores, call centers and distribution and fulfillment centers.

Roughly 48,000 of the jobs are for the holidays, the company said, while the remaining were for permanent positions beyond the holidays.

Macy's, which is holding a national event on Thursday, joins other companies looking to bring on staff.

Last week, FedEx said it would hire 90,000 employees across divisions ahead of the holiday season.

FedEx  (FDX) - Get FedEx Corporation Report trimmed its full-year profit forecast on Wednesday following weaker-than-expected first quarter earnings.

The world's biggest package delivery company said ongoing tightness in the labor market "remains the biggest issue facing our business", noting wage increases and overtime rates added $450 million in extra costs for the three months ending in August.

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CVS Health  (CVS) - Get CVS Health Corporation Report on Monday said it planned to hire 25,000 clinical and retail employees to prepare for a potential surge in demand during the flu season as coronavirus-related vaccine shots and testing continue to rise. 

Earlier this month, Walmart  (WMT) - Get Walmart Inc. Report said it planned to hire 20,000 workers at its supply chain division ahead of the holiday season. Walmart and other companies have also raised their low-end wages in recent months.

Macy's announcement contrasts sharply to June 2020, when, after being battered by the COVID-19 pandemic shutdown, the company said it would cut nearly 4,000 jobs as part of a plan "to align our cost base with our anticipated lower sales."

Macy's sparked outrage last year when it awarded bonuses to senior management, including a $3.7 million stock award to the chief executive, while cutting jobs.

Last month, Macy's posted much stronger-than-expected second quarter earnings and raised its full-year profit outlook while reinstating its dividend.

The current worker shortage has caused concern among economists and political leaders.

In August, National Retail Federation Chief Economist Jack Kleinhenz warned that a labor shortage and supply chain disruptions are setting the stage for increased inflation.

While noting the economy's growth, Kleinhenz said the pace of COVID-19 vaccinations had slowed considerably and fears of the Delta variant were likely weighing on concern confidence.

Despite continued unemployment, there are about 7 million fewer workers on payrolls than just before the pandemic, the federation said.