Even some Santas are feeling the labor market pinch

Just a few years ago, Santa Claus literally couldn't come to town: Headlines warned of too few St. Nick lookalikes available to make appearances at malls, stores, office parties and private gatherings. Recent anecdotes suggest that demand for Santas has become more Grinch-like, mirroring what's happening for temporary workers broadly.Why it matters: Not even a Christmas season icon can dodge the labor market's woes.The big picture: Labor shortages — for Santa and all other American workers (seasonal or not) — were rampant in 2021 and 2022, providing plentiful job opportunities.Today, those looking for even temporary gigs face sluggish hiring conditions.Zoom in: "The number of people reaching out to us [to hire Santas] is down compared with last year — and last year was down compared with the year before. That's really due to the economy," Mitch Allen, who runs Hire Santa, a staffing agency, tells Axios."People are still having Christmas celebrations, but they are not having as big of an event at their home or office," he says. "They might not have entertainers."Allen told NPR that leads — people calling to inquire about for-hire Santas to appear at malls, schools, offices or a private event — are down almost 30% compared with 2024.For mall Santas, some of that soft demand is structural and long in the making: There are fewer malls, and more people are doing their holiday shopping online.The intrigue: Yet it's not just softer demand — a rebound in the number of prospective Santas available for work might also help explain why there appear to be fewer unable-to-fill opportunities.Allen says his agency has stepped up recruitment efforts in recent years."We've worked hard over the last five years to increase the number of Santas that we have in our database."Flashback: "COVID-19 was not favorable to a number of Santas and Mrs. Clauses," says Wade Wells, a Texas-based professional Santa. "There just weren't a lot of new Santas coming into the field."The other side: An aging population looms over the broader U.S. workforce, with the share of prime-age workers projected to fall drastically in the years ahead.That demographic shift might just be a boon for the Santa profession if retirees — at least those who fit the "Santa mold" — choose to pick up seasonal work. What to watch: Unlike other workers, temporary Santas may not have to worry about AI taking their job."I feel comfortable that there will always be people who want a more real-time connection," says Ed Taylor, the founder of the Worldwide Santa Claus Network, a Santa Claus training and hiring site.