Retail headcount in Britain has declined at the fastest rate since February 2009, with retailers expecting staff numbers to contract further.
Retail employment in the year to May fell for the third quarter running, and at the fastest pace since February 2009, according to the CBI’s quarterly distributive trades survey.
Between May 2022 and May 2023, the number of people employed in retail dropped 48%. Retailers expect headcount to continue to contract next month (-49%).
As price growth in the year to May remained near record levels, sales volumes fell and are expected to continue to fall short of seasonal norms, but to a lesser extent next month.
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However the survey of 123 respondents, 46 of which were retailers, also showed the sector was optimistic about the future, with their optimism score growing to +6% from -6% in February.
The findings echo the results of the latest labour market figures from the ONS, which found organisations remained cautious about recruitment amid rising costs. The estimated number of vacancies from February to April 2023 fell by 55,000 compared with the previous quarter.
CBI principal economist Martin Sartorius said: “Retailers continue to face a challenging trading environment, with firms reporting disappointing sales and formidable inflationary pressures. As a result, they are having to cut back on the size of their workforce and investment plans.
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“Looking ahead, there are some reasons for retailers to be more optimistic about the outlook. Consumer sentiment has been improving and households’ energy bills are set to decline from July. The resulting boost to incomes should help support retail sales going into the second half of this year.”
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