Santa-Hiring Trends Could Signal a Recession

The demand for professional Santas seems to have cooled, a recent story by NPR found. Does that also signal that the U.S. economy is going down the chimney, so to speak?

To plumb that question, NPR Planet Money reporter Greg Rosalsky reached out to Mitch Allen, founder and “Head Elf” at Hire Santa, an agency that provides the jolly old soul for holiday events. Allen, who estimates there are between 9000 and 10,000 professional or “near professional” Santa Clauses in the U.S., says he’s seeing less demand for such gigs this season.

Specifically, he says the number of inquiries to his business to book Santa at events “is down almost 27% year to date, compared with last year. And last year was down compared with the year before.”

“This seeming decline of demand for Santa could be one small one suggesting that the overall economy is sleighing downward,” the NPR report notes. “It’s part of a broader decline in the demand for seasonal workers this year, something a number of sources have reported in recent weeks.”

Allen believes the primary driver of the decline in demand for paid Santa visits is from private holiday parties and events.

“Consumers are not reaching out to have Santa or Mrs. Claus or other holiday entertainers come to their home or office for a Christmas party,” Allen told the news service. “And so I view that as like people scaling back their own Christmas plans. They may still be having parties but they’re not having sort of blowout parties with Santa and other holiday characters there.”

Allen also pointed to recent reports that companies are laying off workers and that consumer credit card debt is at an all-time high.  “So, yeah, maybe a big decline in Santa appearances could be a recession indicator,” Rosalsky concludes.