Retail employment drops by 2.4 percent in first quarter of 2019

The number of retail jobs in the UK dropped by 2.4 percent in the first quarter of 2019 compared to a smaller reduction of 2.2 percent in the final quarter of 2018, new data shows.

According to the British Retail Consortium (BRC), the year-on-year drop is a result of “structural change in the retail industry triggered by the advent of online sales and other technologies.” The figures mirror the downward trend in employment at the industry level shown by ONS data, which showed a decline in employment of 2.1 percent in Q4 2018 and 2.9 percent in Q3 2018. The figures are in stark contrast with the UK economy as a whole, however, which sees employment at the highest levels since ONS records began.

Total hours in Q1 2019 were also down 2.7 percent year-on-year, similar to the reduction of 2.8 percent in the last quarter, while store growth was steady at 2.3 percent in Q1 2019, the same rate of change as in the previous quarter. The BRC said the positive store growth it found was in contrast to ONS figures which showed the number of local units is in decline in the UK due to the expansion of smaller format stores.

Of the retailers surveyed, 17 percent indicated plans to reduce staff in the coming quarter, above the comparable figure of 13 percent last year, while 67 percent plan to keep their staff numbers unchanged - down from 75 percent last year.

“While the number of stores rose, this was mainly driven by an increase in small format stores, with many larger stores closing - resulting in a net job loss. And more jobs are likely to disappear unless there is a shift in Government policies,” BRC chief executive Helen Dickinson said in a statement.

“Retail is undergoing a period of unprecedented change in response to new technologies and changing consumer behaviour. The investment required to successfully navigate this transformation is being held back by the rising cost of public policy. Over three million people rely directly on the retail sector for jobs, with many more working throughout the supply chain. Yet spiralling business costs pose a grave threat to these jobs – as recent administrations, CVAs, and store closures show.”

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