Record 2 in 3 High Street firms hit by jobs massacre
THERE are fresh fears for Britain’s high streets as the proportion of shops announcing job cuts hits an all-time high.
Two-thirds of businesses said they were shedding staff this month – the largest share since records began in 1983.
Bosses are braced for sharper declines as the Government’s wage subsidy scheme comes to a close, the Confederation of British Industry (CBI) survey found.
Large UK firms have already laid off 34,000 retail jobs in retail on top of 20,000 in pubs, bars and restaurants, according to a Mail audit. When small and medium-sized businesses are taken into account, the number will be much higher. Firms will also be expected to pay more towards their staff’s wages from next week, before the furlough scheme ends in October.
Department stores, clothing chains and shops selling expensive household items are faring the worst, the CBI said, adding that further Government support may be needed to prevent a jobs bloodbath.
In total, 730,000 people lost their jobs between March and July, data from the Office for National Statistics shows, and economists fear unemployment could rise to nearly four million people this year.
Shops are suffering from a huge collapse in the number of tourists and commuters – many of whom are not expected to return to work until next year.
Last week, the number of people who visited central London’s shopping streets was down by close to two-thirds, according to data provider Springboard. Workers’ decision to stay at home has already hit jobs at some of Britain’s best-known businesses. WH Smith has shed 1,500 staff, while Upper Crust is slashing 5,000 jobs.
Boots has cut 4,000 jobs, Debenhams shed 6,500 staff, with a further 14,000 at risk, and John Lewis is in the process of cutting 1,300 roles after closing eight stores. Marks & Spencer is making 7,000 further cuts.
The CBI said the figures suggest job losses have been delayed rather than avoided by Government support. Alpesh Paleja, its lead economist, said: ‘Trading conditions for the retail sector remain tough, even against the backdrop of business slowly returning. Further support may well be needed for the retail sector.’