Want a seasonal job for some extra cash and sweet discounts for the gift-giving season?

Experts say you have to start shopping now.

Retailers' appetite for holiday hiring is shrinking this year. The reasons: not-so-rosy holiday sales forecasts driven by rising interest rates, the continuing Iraq conflict and a cooling housing market.

Last year, retailers added 692,800 temporary employees to help shoppers through the season that includes Christmas, Kwanzaa, Hanukkah and Diwali. That was level with the previous year and way below the hiring peak of 849,400 in 1999.

This year, retailing experts expect that seasonal hiring will be stagnant at best, with merchants relying on self-service kiosks and technology that replaces humans on the sales floor.

"With fewer jobs being added to retailers' payrolls, competition for jobs will be higher," said John Challenger, chief executive of Challenger, Gray & Christmas, a Chicago outplacement firm.

Former employees and loyal customers are two segments that retailers plan to target for hiring this year, experts say. That's because it will help them trim training costs and land more-qualified workers. "They want someone who can hit the ground running," Challenger said.

Indianapolis jewelry store Reis-Nichols' president B.J. Nichols says there's a reason for that.

"It's very unusual that we just go out and hire someone," he said. "We invite someone who's worked for us before, usually someone we can trust."

Some retailers believe they can cultivate that trust in their best clients, and not just former employees. At J.C. Penney, managers have found some of their best hires among loyal shoppers, said Vicki Davis, manager of a Penney store in Indianapolis.

"They know our merchandise, and that helps," she said.

Some experts say it's still too early to gauge shoppers' holiday mood. Industry groups are predicting holiday retail sales growth of 5 percent to 6 percent this year.

"We will have to wait and watch," said Patrice Duker, spokeswoman for the International Council of Shopping Centers, a trade group. "A lot can change by Thanksgiving weekend."