Retail jobs plummet
Despite some evidence of recovery in the retail sector jobs have been cut there at the fastest rate in a decade, with worse to come, according to employers’ organisation the CBI.
According to the CBI’s latest monthly Distributive Trades Survey, employment in retail fell 45% in the year to July, compared to a drop of 20% in the year to May. The quarter ahead will bring an even sharper fall of 52%, it predicts. The rate of fall in employment was the fastest since 2009.
The survey showed a slight reduction in retail sales on a year ago, which comes after broadly flat sales in the year to July. A faster fall is expected next month. According to the survey, the decline was broad-based across sectors, with only grocers, furniture and carpets, non-store and “other” goods sales seeing growth.
According to the CBI, despite the “gloomy” data, retailers expect a moderate improvement in the business situation in the coming quarter. Elsewhere, wholesalers saw sales fall for a fifth consecutive month, but anticipate an easing in the decline in September. And motor traders saw growth in sales pick up further from last month, and another rise next month as well.
Alpesh Paleja, CBI lead economist, commented: “Further support may well be needed for the retail sector if demand continues to disappoint. Extending business rates relief will go a long way towards alleviating pressure on retailers’ cash flow.”