More than 40% of retailers are considering cutting staff numbers, in addition to the 250,000 jobs lost on the high street in the last five years, according to research from the British Retail Consortium. The survey revealed that many store owners are looking to reduce hours, freeze hiring, and address the escalating employment costs. The pessimistic outlook is attributed to the recent increase in national insurance costs and the rise in the national living wage. Chief financial officers in the retail sector expressed a significant increase in pessimism, with 69% feeling negative about the future compared to 56% last year.
Only a small percentage (14%) of respondents were optimistic, with the majority (84%) citing labor and employment costs as a top concern for the upcoming year. Many businesses are planning to cut back on staff hours, freeze recruitment, and reduce head office and store staff numbers. The retail sector, which is a major private employer in the country, has already shed 74,000 jobs in the past year and over 250,000 in the last five years. The British Retail Consortium emphasized the importance of the Employment Rights Act in shaping the future of job opportunities in the industry.
The looming threat of more job losses follows the recent collapses of prominent chains like Russell & Bromley and Quiz. Helen Dickinson, the CEO of the British Retail Consortium, highlighted the fragile state of the economy, with low wage growth, rising unemployment, and diminished consumer confidence impacting demand. The implementation of the Employment Rights Act is seen as crucial for maintaining job standards and flexibility in the sector. Dickinson warned that failing to consider business needs in government policies could lead to a reduction in entry-level and part-time job opportunities when they are most needed.
