Retail Job Losses Hit Record Low Amidst Rising Costs
The British Retail Consortium (BRC) has issued a significant "stark warning" regarding the state of UK retail employment, revealing that job numbers have plummeted to a record low over the past year. This decline is part of a broader trend, with approximately 400,000 positions having been lost across the sector over the last decade, painting a concerning picture for one of the UK's vital industries.
According to the latest figures from the Office for National Statistics (ONS), the retail sector recorded 2.73 million jobs in June. This represents a substantial decrease of 97,000 positions year-on-year, and a stark reduction of 393,000 jobs compared to 2015. Breaking down the employment landscape further, a four-quarter average shows 1.28 million full-time jobs and 1.5 million part-time jobs. Over the past decade, full-time employment has decreased by 133,000, while the number of part-time roles has seen an even more significant drop of 258,000 over the same period.
Helen Dickinson, Chief Executive of the BRC, attributed these ongoing declines primarily to the escalating costs faced by employers. She highlighted the combined impact of rising employer taxes and higher wages, estimating that these factors are costing the industry over £5 billion this year alone. Dickinson emphasised that such substantial financial pressures are directly "hitting retail employment hard," making it increasingly challenging for businesses to maintain or expand their workforce.
Looking ahead, Dickinson warned that the situation could deteriorate further. She cited the upcoming Employment Rights Bill, which the Office for Budget Responsibility (OBR) predicts will have a "materially negative impact on employment." Compounding these concerns is the looming threat of additional cost increases anticipated in the Autumn Budget, including the potential for a new surtax on large retail premises. These policy changes, she argued, would only exacerbate the financial strain on retailers.
The BRC cautioned that as costs continue to mount, more retail jobs will inevitably be lost. The collective impact of increased regulatory complexity, such as that stemming from the Employment Rights Bill, and potential new taxes would be twofold: driving up prices for consumers and simultaneously stifling retail employment. Therefore, the BRC strongly urged the Chancellor to avoid any measures in the Autumn Budget that would further increase costs for high street businesses, asserting that otherwise, "working people who will pay the price as local, flexible jobs are lost, and the cost of living continues to rise."
