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Job Security Lacking This Holiday Season

Increased debt loads have many Americans feeling pressure

By Mark Huffman
ConsumerAffairs.com

November 24, 2008

Personal Finance • Staying Healthy in a Sick Economy • Consumer Confidence Sinks to Historic Low • How Retirees Can Survive the Bear Market • Are Men Hardwired to Overspend? • Shopping Poll Holds Bad News for Retailers • 533,000 Jobs Lost in November • Feds Report More Signs of Recession • Consumer Confidence Rebounds in November • Cheap Oil May Be Economic Stimulus • Job Security Lacking This Holiday Season • An Upside to the Down Market: A Lower Tax Bill • Americans Tap Savings to Cope with Economy • Economists' Panel Sees Prolonged Recession --- • More Personal Finance News

For many Americans, holding onto their jobs a while longer may top their holiday wish list this year.

The America's Research Group/UBS 2008 Christmas Survey finds that 22.8 percent of those questioned have already seen job cuts at their workplace and 31.8 percent expect them in the future leaving only 63.9 percent feeling truly secure in their jobs.

At the same time, pressures from debts have skyrocketed with over half of American consumers feeling some pressure from debts and 21.8 percent feeling a lot of pressure.

Of those feeling pressure from debt, 57.9 percent will spend less this Christmas due to their credit concerns. "Consumers have snapped shut their wallets this year and it's difficult to find a bright spot for the Christmas shopping season," said C. Britt Beemer, Chairman of ARG.

Gift cards glittered brightly last year, but this year consumers are wary because they fear that stores could go into bankruptcy and not honor the cards. Of those consumers who normally give gift cards but won't this year, 64.4 percent will give money instead. Only 35.6 percent said they would give gifts instead, dashing retailers' expectations that fewer gift cards could boost gift sales. Of those consumers who will give fewer gift cards, over a third say that there is a chance they could give nothing at all.

Big bargains may lure some consumers out to shop, however, according to Beemer. This year, almost 90 percent of consumers say they are either some or very much more driven by sales and discounts. When asked if they were more sales driven than they were three to five years ago, a whopping 84.0 percent said "yes."

The top-rated sales promotions are:

• 50 percent off (41.9 percent of consumers)

• Take an additional 20 percent off (28.6 percent of consumers)

• Save 40 -- 60 percent (27.0 percent of consumers)

• Buy one, get one free (24.0 percent of consumers)

Ladies specialty stores are at risk, according to Beemer. Of women, 36.3 percent do not shop at ladies apparel specialty stores at all. Of those who do, 26.2 percent will spend less this Christmas season at those stores.

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