Dive Brief:

• Retailers hired fewer temporary holiday workers this past season, the second year of holiday hiring declines despite higher demand, according to a report from outplacement firm Challenger Gray & Christmas. Seasonal employment grew by 745,800 workers, 1.2% lower year over year, according to the report. 2014’s hiring total was 755,000, down 4% from 2013’s 787,000.

• While the firm had expected holiday hiring to rise or stay even, November and December saw a slowing in hiring. The major factors were technology that allowed retailers to shift work from actual people, a rise in e-commerce, and the declining importance of Black Friday.

• The bulk of holiday-time hiring is also shifting to October, the firm said, which may have accounted for the unexpected dip in November and December after robust hiring in October last year.

Dive Insight:

As e-commerce surges—this holiday saw e-commerce sales rise 20% by some measures—holiday hiring patterns are also shifting. While technology and e-commerce are factors, Challenger noted that shoppers are no longer waiting until Black Friday to find deals.

“Retailers are offering more deals online and at different times throughout the holiday season. As a result, more and more shoppers are learning that they no longer have to endure the crowds and mayhem at 5am on the Friday after Thanksgiving to get a good deal,” Challenger, Gray & Christmas CEO John Challenger said.

“The continued growth in online purchases means that retailers need fewer bodies on the sales floor, while more workers are needed by warehouses, fulfillment centers and shipping companies,” he also said. “The earlier hiring gains, coupled with the fact that Black Friday has lost some of its punch in recent years, means that retailers simply do not have to add as many workers in November and December as they used to.”

Over the last two holiday seasons, October retail employment increased by an average of 190,400. From 2010 through 2013, retailers added an average 145,600 jobs in October. Despite downward adjustments in hiring statistics from the U.S. Bureau of Labor Statistics, retailer employment gains remained the highest on record for that month, in data going back to 1939, the firm said.

“The earlier hiring gains, coupled with the fact that Black Friday has lost some of its punch in recent years, means that retailers simply do not have to add as many workers in November and December as they used to,” said Challenger.

And retail employment will likely fall again early this year as those holiday hires leave. An average 787,000 jobs have been lost in January and February since 2010, according to Challenger.