Despite Layoffs, Retailers See Holiday Spending Surpassing $1 Trillion

It’s already been one of the worst years for layoffs in decades, with employers slashing over 1 million jobs, according to a report from career services firm Challenger, Gray & Christmas, Forbes Daily reported.

Spending is forecasted to increase 3.7% to 4.2% over last year.

The company’s chief revenue officer and labor expert Andrew Challenger blamed several factors, including artificial intelligence (AI) adoption, federal budget cuts, and reduced consumer spending.

Yet, the National Retail Federation (NRF) expects holiday spending to top $1 trillion for the first time this year — even as consumers remain more price-conscious than ever — NRF President and CEO Matthew Shay said.

The organization forecasts spending will increase 3.7% to 4.2% over last year, though economists have warned that lower-income consumers are beginning to pull back.