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The January release of the Kronos Retail Labor Index report provides results for the December 2009 Index as well as a year-end recap of trends in the applicant population.  The December Index level was the highest of 2009, at 4.02% (for every 100 applications received, 4.02 hires were made).  This result appears to be driven by a continued decrease in applications (the lowest since August 2008) which outweighed a 7.1% decrease in hirings relative to a year ago. December unemployment numbers from the Bureau of Labor Statistics show that while unemployment remained constant at 10 percent, the “underemployment” rate, which includes those who have given up looking for work and those employed part time for economic reasons, rose slightly from 17.2% to 17.3%.  We will be watching Kronos application levels closely to see whether recent declines in application volumes are  the result of discouraged unemployed workers giving up on applying, or whether they reflect early signs of an improving labor market. Holiday 2009 recap. In reviewing the holiday hiring season, which typically is in full swing by October, some interesting dynamics emerged when we compared 2008 and 2009.  September and October Index levels were far higher in 2008 than in 2009, with a new all-time low reached in September 2009 (2.58%), and with only a slight rebound in October 2009 (2.90%).  These numbers reflect the extreme caution with which retailers approached the holiday 2009 season, after being burned by low sales and heavy discounting in 2008.  However, a hiring surge in late November, combined with a decrease in applications, pushed the November 2009 Index above the November 2008 level.  This trend evened out in December, with December 2009 and December 2008 Index levels at the same 4% level.

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