The second wave of Covid-19 has had a devastating impact on the UK retail industry, leading to a significant loss of jobs. Recent data from the Office for National Statistics reveals that retail job numbers fell by a staggering 67,000 in the final months of 2020, bringing the total number of jobs to its lowest level since 1999.
Two well-known retail giants, Arcadia and Debenhams, were among the casualties of the pandemic. Both companies collapsed into administration, resulting in the loss of numerous jobs. Currently, the total number of retail jobs in the UK stands at 3.097 million, encompassing 2.889 million employed positions and 208,000 self-employed jobs.
Unfortunately, the situation is expected to worsen as the country gradually returns to more normal operating conditions and the government’s furlough scheme comes to an end. Currently, five million workers in the UK are still furloughed, with a significant portion employed in the retail sector. As restrictions are lifted, it is anticipated that more job losses will occur.
Helen Dickinson, the chief executive of the British Retail Consortium, has expressed deep concerns about the future of the industry. While the furlough scheme has saved many jobs, she warns that the situation could deteriorate further if the third lockdown continues. Dickinson emphasizes that although new jobs have been created, particularly in the grocery sector and online retail, traditional town and city center stores are employing fewer people.
To rebuild the economy, Dickinson stresses the importance of the retail sector as the largest private sector employer in the UK. She urges the government to take necessary precautions to prevent future lockdowns, as any delays in the roadmap for reopening could lead to more store closures and put the livelihoods of furloughed retail workers at risk.
Retailers are working hard to ensure the safety and readiness of their stores and operations for reopening. It is crucial that all retail businesses are allowed to open and remain open to stimulate the demand that will drive economic recovery.
The impact of the pandemic on the UK retail industry has been severe, and immediate measures are needed to support and revive the sector. The government must prioritize the recovery of retail jobs and ensure that further lockdowns are avoided to safeguard the future of the industry and the wider economy.
Useful Links:
1. Retail Gazette: Figures Show 67,000 Jobs Lost in Retail
2. British Retail Consortium: Lockdown 3.0 Highlights What Needs to Change for UK Retail
