Full-jobs in retail grow at fastest pace since March last year

The week got off to a good start for the retail sector as new data revealed that the number of full-time jobs has grown at the fastest rate since March last year.

The figures showed a 0.8% increase in the third quarter compared to the same period a year earlier, the British Retail Consortium (BRC) reported.

BRC chief executive Helen Dickinson said: "Retailers are beginning to prepare for extra demand at Christmas, which shows in the rise of hours across the industry of 0.8%. Growth is spread across the whole of the industry with both food and non-food retailers reporting rises. This pauses a 19 consecutive month decline in FTE reported by food retailers."

However, she also said the possibility of future strong jobs growth was weakened by the news that government policies could add £14bn to the retail wages, training and rates bill over the next five years.

"We will be watching the figures very closely to see how the impact of this additional burden affects employment prospects in retail going forward," Dickinson said.

"A commitment from the Chancellor to keep his promise of fundamental reform of rates would instil more confidence in retailers for the future."

Other figures from the BRC showed a 1.1% rise in the number of outlets in the third quarter, driven by both food and non-food retailers.

On a rolling three-month basis, food retailers saw growth in the equivalent number of employees for the first time since November 2013.

The equivalent number of full-time employees in non-food retail rose in the third quarter of 2015, continuing a steady increase in investment in jobs.

Christina Tolvas-Vincent, head of retail employment at business law firm Bond Dickinson, said: "Green shoots of recovery are clearly visible, even amongst grocers, who have seen the first increase in hours worked for almost two years despite tough economic challenges.

"Retailers should be feeling more optimistic, with continued low inflation and a recovering employment market continuing to boost consumer confidence and spending power.

"However, there are significant challenges for retailers ahead, such as the implementation of the national living wage next April. As one of the biggest employers in the UK, the retail sector will be heavily affected and, if they haven’t already done so, retailers should start planning for how to meet this new cost without delay."