UPDATE 2-Macy's to hire more than 38,000 employees for holiday season

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Sept 18 (Reuters) - Macy's said on Monday it would hire more than 38,000 full and part-time workers for the upcoming holiday season - fewer than last year - as the U.S. department store gears up for the busy shopping period.

A report by Challenger, Gray & Christmas last week revealed U.S. retailers would hire the lowest number of seasonal workers this year since 2008. Planned holiday hires announced so far were much lower than in 2022, it said.

U.S. holiday sales this year are expected to grow at their slowest pace in five years, as consumers spend cautiously due to shrinking household savings and lingering worries over the economy.

Macy's last year had said it would recruit about 41,000 employees, while in 2021 it announced to take on around 76,000 workers.

The pace of hiring slows at a time when retailers battle weakening consumer sentiment and increased labor costs even as the U.S. labor market starts to ease.

Macy's is looking to hire for its three banners, Macy's, Bloomingdale's and Bluemercury stores, as well as its distribution centers.

Gifting company 1-800-Flowers.com last week announced plans to hire more than 8,000 seasonal workers across its store banners, while Kroger said it would "hire thousands of associates".

Some companies such as Bath & Body Works are also offering perks to attract more employees for the holidays. The company said it would offer flexible work hours, a $500 associate referral bonus and a 40% store-wide discount to the 2,500 seasonal employees it is looking to hire at its four Ohio-based distribution centers. (Reporting by Deborah Sophia and Ananya Mariam Rajesh in Bengaluru, Additional reporting by Savyata Mishra; Editing by Shilpi Majumdar and Krishna Chandra Eluri)