(Adds background on retailers)
Sept 17 (Reuters) - United Parcel Service Inc would hire about 100,000 temporary employees for the crucial holiday season, up about 5 percent from a year earlier, the world's biggest package delivery company said on Monday.
Package delivery companies and retailers have increased their seasonal hiring this year, to cater to the e-commerce sector that is expecting heavy shipping volumes, as shoppers spend more buoyed by a strong economy and labor market.
Last week retailer Target Corp unveiled plans to hire about 120,000 seasonal workers for the holidays, up 20 percent from last year, while department store chain Macy's Inc said it would hire 23,500 temporary workers at its online fulfillment centers across the U.S., an increase of about 30 percent.
Retailers' holiday hiring plans often reflect their sales expectations for the most competitive shopping season of the year, which begins a day after Thanksgiving and continues into early January when there is a large wave of returns.
UPS' smaller rival FedEx Corp is also hiring about 55,000 workers for the season, up about 10 percent compared with a year earlier.
UPS, which hired about 95,000 temporary workers last year, had about 454,000 permanent employees as of Dec. 31, 2017, while FedEx employed about 166,000 people as of May 31. (Reporting by Ankit Ajmera in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)