Jobs growth defies tough economy

28 October 2010

In the third quarter of 2010, retail full-time equivalent (FTE) employment was up by 2.1%, compared with the same quarter a year earlier. This is equivalent to a net increase of 12,746 retail jobs. The increase in employment was driven by a 4.2% net increase in the number of stores in the three months to September, compared with the same period last year – an additional 652 retail outlets.

The BRC-Bond Pearce Retail Employment Monitor (REM) shows 61% of retailers in our sample intend to increase staffing levels in the next three months, compared with 54% this time last year. It indicates a noticeable improvement in sentiment over the last 12 months.

http://www.brc.org.uk/showDoc04.asp?id=4138&moid=7136

39% of the sample indicated that they would keep staffing levels unchanged compared with 38% in the third quarter of 2009. There were no retailers in our sample suggesting that they were planning to reduce staffing levels in the next three months, whereas, last year 8% of retailers said that they were planning to reduce staff levels.

Stephen Robertson, British Retail Consortium Director General, said:

"British retail is the engine room of economic recovery. This is the tenth consecutive month of retail employment growth, which is an impressive effort in tough trading conditions.

"In the last quarter, retailers in our Monitor have managed to deliver 652 new stores and created an extra 12,750 jobs. At a time of economic uncertainty, and with half-a-million public jobs due to be lost by 2014, this is up-to-the-minute evidence that retailers are continuing to invest in new premises and people.

"The recovery remains fragile and continuing growth should not be taken for granted. Rightly, the Government has shown resolve with the public spending cuts part of its plan for the country. It must be equally committed to promoting the private sector-led growth it knows is needed."

Christina Tolvas-Vincent, Head of Retail Employment at business law firm Bond Pearce, said:

"Coming in the same week as the second major GDP growth surprise in a row, the results of our latest Monitor again demonstrate the vital role that the retail sector is playing in driving economic recovery.

"Retailers are now steeling themselves to withstand and absorb the cuts to the public sector and the next two quarters will severely test that resolve. As the cuts bed in, and with a rise in VAT on the horizon, the impact on consumer confidence remains to be seen - however retailers remain upbeat and positive in the lead up to Christmas."

Notes:

The BRC-Bond Pearce Retail Employment Monitor measures changes and trends in retail sector employment over time. Data is analysed in monthly intervals and is collected on a quarterly basis.

The Monitor is representative of large and small retailers, covering both food and non-food sectors. The sample includes data for over one million employees, representing over a third of the total retail labour market and accounts for over 50% of the retail sector by turnover.

There are a number of metrics which the Monitor measures, for example, the overall change in full-time equivalent employment levels over time. Indices have been created for different metrics to measure changes or differences over time.

All participants in the Monitor are confidential.

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