As consumers are spending less high street retailers are cutting staff to the point where 20,000 workers have lost jobs within just the past year. It is reported that many stores are closing, those working part-time have had their hours cut tremendously and full-time staff has been let go.
Over the past year more than 20,000 workers have lost their jobs and at latest report there are 23,000 fewer workers in September of this year than there were the same month a year ago. According to the British Retail Consortium the actual number of workers who have lost their jobs totals 23,000.
This loss resulted in what is equivalent to 5,780 full time positions in the retail sector but it is also reported that some of the huge supermarkets had compensated for that to some extent by hiring some of those workers. Retail sales are on the decline as consumer spending is down, resulting in the largest loss of retail employment since the BRC began the survey two years ago.
Unfortunately, the news gets even worse as it is forecast that as many as 27,000 workers in the City will lose their jobs this year. The Guardian reported that an economist, Rob Harbron, states that this is the result of stricter financial regulations and the eurozone debt crisis.
Inflation is at 5.2% which is a three year high and the average UK household was reported to have had approximately £60 less spending money than last the same month last year. For the past 18 months household spending has been down. Since consumers have been spending less retailers have literally been forced to reduce their staff significantly.
As well, retailers are reluctant to hire the normal Christmas staff because there is still a good bit of uncertainty in whether or not shoppers will be spending this year or not.
