(Reuters) – Macy’s said on Thursday it will hire more than 31,500 full and part-time employees for the upcoming holiday season – fewer than last year – as the U.S. department store gears up for a busy shopping period.

U.S. retailers are expected to hire fewer workers this holiday season than in 2023 due to a softer labor market and tighter consumer spending heading into the crucial shopping period, according to a report earlier this week by Challenger, Gray & Christmas.

Macy’s had said last year it would recruit about 38,000 employees, while in 2022 it announced to take on around 41,000 workers.

A Deloitte forecast showed U.S. holiday sales are expected to grow at their slowest pace in six years as persistent inflation and depleted savings turn shoppers more frugal ahead of the holiday shopping period.

Holiday season sales generally account for more than half of U.S. retailers’ annual revenue.

Parcel delivery firm UPS separately said it plans to hire 125,000 workers for the holiday period, which is more than the 100,000 it had hired last year, to prepare for the busy shipping season.

“The year-over-year increase in our seasonal hiring allows us to be even more confident that we will meet anticipated customer needs,” UPS said in an emailed statement.

(Reporting by Bhanvi Satija and Juveira Taassum in Bengaluru; Editing by Krishna Chandra Eluri)