Many economic analysts have been reporting in recent weeks that unemployment is on the rise in the retail sector; a leading retail body has hit back and claims the figures are inaccurate.
According to the executive director of the Australian Retailer Association, Richard Evans, recent unemployment claims in the sector are unwarranted and have been analysed incorrectly.
“Recent commentary regarding rising retail unemployment was a result of inaccurate analysis of the ABS labour force figures,” he said.
“The labour force figures actually confirm the retail sector has maintained employment levels over the three months leading into May with minimal movement from February’s seasonally adjusted unemployment numbers.”
According to the ARA’s own Australian Retailers Index, the sector has actually grown 12 per cent and many retailers are holding onto staff effectively.
“The Index shows most retailers are holding onto skilled staff in preparation for rising demand with 68 per cent reporting no change in employment levels in the past quarter. A further 16 per cent of retailers actually increased their number of staff during the same period,” he said.
“Retailing works in cycles, and although the sector has experienced a downturn, good retailers are doing their best to hold onto skilled staff as consumer confidence continues to grow and a new type of consumer emerges.”
Evans emphasised that retailers will see demand increase due to changing consumer spending patterns.
“A new type of consumer is emerging, one who is in a better cash/credit position and will re-enter the market ready to spend without guilt but with more purchasing power,” he said.
“When this happens, retailers will need to be ready with skilled staff to service consumer demand. Smart retailers are creating an employment culture that encourages career growth and holds onto the skilled staff they will be relying on when improved growth returns in the September quarter.”