Survey shows retailers are hanging onto staff

A survey by the Australian Retailers’ Association has highlighted a new sense of optimism in the sector, with almost 70% of retailers saying they maintained staff levels in the last three months.

The survey also showed 16% of the retailers surveyed had actually increased staff numbers in the last quarter, adding more weight to the theory that unemployment might not spike as high as some economists fear.

Yesterday, Westpac trimmed its forecast for unemployment slightly after a run of optimistic economic data.

ARA executive director Richard Evans said his organisation’s survey contradicted statements by Margy Osmand, chief executive of the Australian National Retailers Association, who said employment data from the Australian Bureau of Statistics showed that 12,400 full-time jobs were lost in May, while an additional 6000 part-time jobs had been created.

“The labour force figures released last week 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,” Evans says.

“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 says the outlook for the September quarter is also good, as consumers appear to have used the Government’s stimulus handouts to get their personal balance sheets in order.

“As consumer confidence returns a new type of consumer is emerging. This new consumer is in a better cash/credit position and will re-enter the market ready to spend without guilt but with more purchasing power.”

“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,” Evans said.