5th February 2008
Retail 'vibrant', despite job cut fears
The retail sector remains 'vibrant' despite fears that large job losses may be looming, according to a government-sponsored skills council.
Responding to yesterday's prediction that 100,000 retail jobs will be lost over the next two years, Skillsmart Retail called on employers and staff not to write the sector off.
The gloomy forecast was made by Richard Hyman of Verdict Consulting who has increased his job-cut estimate by 40% compared with two and a half years ago in response to tougher conditions for retailers. In times of economic certainty, he explained, "labour is the easiest thing to cut".
Skillsmart Retail head of research Karen Charlesworth was more upbeat, however. "Our own research shows us that retail jobs may well fall in the coming months, but we do not see the future as doom and gloom for those working, or looking to work in the sector," she said.
"Retail is still the biggest private employer in the UK with three million jobs and it still provides a wealth of opportunities for people of all backgrounds."
Commenting on Mr Hyman's forecast, Richard Dodd from the British Retail Consortium told More Than Business News: "He's absolutely right to say that conditions for retailers are very tough at the moment – of course that's going to impact on job creation."
He added that, with relatively few employees, "small retailers will find it harder to make percentage reductions in their staffing" in response to rising costs, and that they are "disproportionately affected by a lot of those rising costs because they haven't got the advantages of the economies of scale and the bargaining power that big retailers have got."
Asked what regulators could do to help small retailers, Mr Dodd said: "We obviously want to see a rate cut on Thursday, but the government shouldn't be adding further to the tax or regulatory burden faced by retail businesses."
Responding to yesterday's prediction that 100,000 retail jobs will be lost over the next two years, Skillsmart Retail called on employers and staff not to write the sector off.
The gloomy forecast was made by Richard Hyman of Verdict Consulting who has increased his job-cut estimate by 40% compared with two and a half years ago in response to tougher conditions for retailers. In times of economic certainty, he explained, "labour is the easiest thing to cut".
Skillsmart Retail head of research Karen Charlesworth was more upbeat, however. "Our own research shows us that retail jobs may well fall in the coming months, but we do not see the future as doom and gloom for those working, or looking to work in the sector," she said.
"Retail is still the biggest private employer in the UK with three million jobs and it still provides a wealth of opportunities for people of all backgrounds."
Commenting on Mr Hyman's forecast, Richard Dodd from the British Retail Consortium told More Than Business News: "He's absolutely right to say that conditions for retailers are very tough at the moment – of course that's going to impact on job creation."
He added that, with relatively few employees, "small retailers will find it harder to make percentage reductions in their staffing" in response to rising costs, and that they are "disproportionately affected by a lot of those rising costs because they haven't got the advantages of the economies of scale and the bargaining power that big retailers have got."
Asked what regulators could do to help small retailers, Mr Dodd said: "We obviously want to see a rate cut on Thursday, but the government shouldn't be adding further to the tax or regulatory burden faced by retail businesses."
- 5th January 2009 Businesses urged to make redundancies 'last resort'
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- 2nd January 2009 Gloomier forecast from business group
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