Retail employment falls by 23,000
The number of jobs in the retail sector plunged by 23,000 last month as retailers continue to be battered by the economy.
Retail employment fell by 0.8% in the three months to 30 September, the equivalent of 5,780 full time job losses, the British Retail Consortium said in the latest BRC-Bond Pearce Retail Employment Monitor report. This is the sharpest quarterly fall seen in two years. Part time workers were the worst affected.
During the same period there were an additional 1,134 shops, driven almost entirely by grocery retailers.
The report found that 54% of retailers planned to take on additional staff over the Christmas period compared to 61% last year, and 8% aimed to cut jobs.
Stephen Robertson, British Retail Consortium director general, said: “With consumer spending now in recession and retail sales volumes declining, this is the biggest drop in overall retail employment in the two years since we began this survey. Redundancy rates are thankfully low but many retailers are not filling every vacancy.
Uncertainty and fears about Christmas trading may also be leading retailers to delay taking on this year’s seasonal staff – with that reluctance compounded by the new Agency Workers rules.
“Supermarkets’ continued expansion into convenience store formats means food retailers are still adding new jobs but even that is slowing. This is all crucial evidence that imposing extra burdens on businesses doesn’t come without costs. It results in fewer jobs in a sector which has previously been a consistent job creator. The Chancellor must use his Autumn Statement to restore confidence and jobs growth. Part of that should be a moratorium on new employment regulation.”
Christina Tolvas-Vincent, head of retail employment at business law firm Bond Pearce, added: “Retailers are being battered by the same economic conditions that have led to the highest unemployment rate for 17 years. There is no doubt it’s tough out there but retailers are showing their determination to hold on to market share by keeping redundancies low and riding out the storm as best they can.
“Store numbers continue to increase but food retailers are almost entirely responsible for this and curiously the trend for them is towards more full-time job opportunities with part-timers’ hours remaining almost flat. That could make things more difficult for those looking for flexible employment. Seasonal hiring from those parts of retailing that gain significantly from Christmas may provide some respite but this won’t change the underlying weakness in the retail labour market.”
