US Economy Is Booming as Amazon Hires 250,000 Workers

"Amazon.com Inc. ( NASDAQ: AMZN) is the second-largest employer in the United States, just behind Walmart Inc. ( NYSE: WMT). Since they are also the two largest retailers in the nation, their fortunes provide a good look into the American economy. Amazon is hiring 250,000 workers for the holidays. The decision says several things. First, the company believes the economy is very strong."

"It usually employs about a million people in the U.S., who support about $400 billion in Amazon's annual U.S. sales. Thus, the retailer must believe holiday sales will surge. Holiday sales are another reason to see the Amazon holiday employment as a good indication of U.S. economic activity. Most retailers make 20% to 30% of their sales in November and December."

"Since Amazon does not have many stores, these employees will end up at the warehouses that allow the company to get its nearly infinite inventory into its delivery mechanisms. The increased employment is a sign that the company is expanding its logistics operations. At Walmart, these people might be located in one of its 4,600 stores. The Amazon ramp-up is different from those at brick-and-mortar retailers."

Amazon is hiring 250,000 temporary workers for the holiday season, indicating confidence in robust U.S. consumer demand. Amazon is the second-largest U.S. employer behind Walmart and typically employs about one million people in the U.S., supporting roughly $400 billion of annual U.S. sales. Retailers commonly record 20% to 30% of sales during November and December, so the hiring anticipates a holiday surge. Most new hires will staff warehouses, reflecting logistics expansion rather than store staffing. Tariffs appear unlikely to sharply reduce holiday sales, though potential margin impacts remain uncertain. AWS growth has not yet reduced retail hiring.

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