Retail employment falls at sharpest rate in more than a decade
Retail employment fell at the fastest rate in more than a decade in the year to August as high street firms cut jobs amid the coronavirus pandemic.
Employment in the retail sector fell 45 per cent in August – the sharpest drop since February 2009 – compared to a drop of 20 per cent in May.
A bigger fall of 51 per cent is expected in September as the government winds down its coronavirus jobs retention scheme, according to the CBI.
A number of major retailers have recently announced job cuts as the pandemic continued to pile pressure on already struggling high street firms.
John Lewis announced it will not reopen eight stores after they were forced to close in March, putting around 1,300 roles at risk.
Boots is preparing to close 48 stores and cut 4,000 jobs, while Debenhams has axed 6,500 positions during the pandemic. M&S will also make 7,000 members of staff redundant over the next three months.
CBI lead economist Alpesh Paleja said: “The furlough scheme has proved effective at insulating workers and businesses in some of the worst-hit sectors during the pandemic, but these findings reinforce fears that many job losses have been delayed rather than avoided.”
Meanwhile, the survey found that retail sales fell six per cent in the year to August, and are expected to plunge 17 per cent next month.
Orders fell again, by 27 per cent compared to a 14 per cent drop in July, and stock levels eased to the lowest levels since March.
Retailers expect the business situation to improve moderately over the next three months, the CBI’s Distributive Trades Survey showed.
Paleja added: “The latest survey shows that trading conditions for the retail sector remain tough, even against the backdrop of business slowly returning.
“Firms will be wary of deteriorating household incomes and the risk of further local lockdowns potentially hitting them in the pocket for a second time.
“As a result, 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.”