Retail job creation slumps

Retail job creation is officially at its slowest since 2009. If you compare March figures with that of the same period in 2010, full time employees fell by 0.8% reflecting slowing consumer demand but also the seasonal impact of Easter not

falling in the same month this year as last. And the number of outlets grew by 5.1% compared with the same month last year.

The BRC-Bond Pearce Retail Employment Monitor (REM) shows 63% of the sample indicated that they would keep staffing levels unchanged in the next three months. 29% of retailers in the survey said they would decrease staffing levels, compared with 8% this time last year. The results indicate a continued lack of confidence in economic recovery.

Stephen Robertson, British Retail Consortium Director General, said, ‘These figures confirm how tough the trading environment is. Retail is still creating more jobs than other sectors but numbers for the quarter rose at their slowest rate since this survey began at the end of 2009.’

‘Comparing just March with March a year ago, retail employment actually fell. That can partly be attributed to the fact Easter is in April this year, but the difficult retail climate is the key factor and will be for some time to come. Consumer demand is weak and retailers, looking ahead and trying to keep their operating costs down, are less optimistic about future employment.’

He continues, ‘Even so, the retail sector generally continues to expand. Retail is the largest private sector employer and, with over a third of its workforce aged under 25, any growth provides important opportunities for the young unemployed who are particularly struggling to find work. A lighter regulatory regime and reduction in financial burdens for retailers remain essential to helping retailers create much-needed jobs.’

Christina Tolvas-Vincent, Head of Retail Employment at business law firm Bond Pearce, said: "Consumer incomes are still being squeezed by inflation and the retail sector is suffering from a lack of consumer confidence - this quarter's figures contain no surprises in that respect. However, we remain in positive territory with jobs still being created – albeit on a smaller scale.’