As tough trading continues, full scale of hidden job losses revealed – and the worst is still to come.
The equivalent of 100,000 retail jobs have vanished in the past 12 months as dire trading conditions take their toll on store groups.
And that is before a swingeing round of job cuts widely anticipated in the new year once the busy Christmas period is over.
The figure was estimated by the chief executive of a leading retailer, who said a combination of factors such as changed shift patterns, recruitment freezes and posts left unfilled meant that official employment data does not reflect the scale of change in the sector.
One chief executive said he was implementing those tactics to reduce head count and believes most other retailers are too. He said: “There is more than just the straight redundancies number.”
Debenhams chief executive Rob Templeman said he believed “tens of thousands” of retail jobs had evaporated and not been reflected in official statistics.
Retail recruitment specialists said that the figure of 100,000 was likely. Michael Page managing director of retail and hospitality Peter Gerrard said: “I’m not surprised by that number. People are leaving and not being replaced. There has been a sharp increase in recruitment freezes, with about 10 to 15 per cent of companies imposing them. It was negligible 18 months ago.”
RHR managing director Peter Burgess said the figure was “pessimistic but plausible” and feared more to come. He said: “The worst time for job losses will be the first six months of next year, which will be a bloodbath for many retailers.”
Last week Tesco chief executive Sir Terry Leahy warned that business costs, such as increased rates, threatened employment in the industry unless action was taken. He said: “There is a danger of job losses in retail. You can’t take retail for granted.”
Rob Coward, employment partner at law firm Hill Dickinson, said he has noticed an increase of between 20 and 30 per cent in the number of retailers enquiring about redundancy programmes.
Retail employs about 2.9 million people – 11 per cent of the UK workforce. In recent months several retailers have begun formal redundancy consultations.
And that is before a swingeing round of job cuts widely anticipated in the new year once the busy Christmas period is over.
The figure was estimated by the chief executive of a leading retailer, who said a combination of factors such as changed shift patterns, recruitment freezes and posts left unfilled meant that official employment data does not reflect the scale of change in the sector.
One chief executive said he was implementing those tactics to reduce head count and believes most other retailers are too. He said: “There is more than just the straight redundancies number.”
Debenhams chief executive Rob Templeman said he believed “tens of thousands” of retail jobs had evaporated and not been reflected in official statistics.
Retail recruitment specialists said that the figure of 100,000 was likely. Michael Page managing director of retail and hospitality Peter Gerrard said: “I’m not surprised by that number. People are leaving and not being replaced. There has been a sharp increase in recruitment freezes, with about 10 to 15 per cent of companies imposing them. It was negligible 18 months ago.”
RHR managing director Peter Burgess said the figure was “pessimistic but plausible” and feared more to come. He said: “The worst time for job losses will be the first six months of next year, which will be a bloodbath for many retailers.”
Last week Tesco chief executive Sir Terry Leahy warned that business costs, such as increased rates, threatened employment in the industry unless action was taken. He said: “There is a danger of job losses in retail. You can’t take retail for granted.”
Rob Coward, employment partner at law firm Hill Dickinson, said he has noticed an increase of between 20 and 30 per cent in the number of retailers enquiring about redundancy programmes.
Retail employs about 2.9 million people – 11 per cent of the UK workforce. In recent months several retailers have begun formal redundancy consultations.
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