Retail jobs grow by 2.9% as UK economy exits recession
Published: 25 October 2012
The third quarter of 2012 has seen retail employment grow by the fastest rate in two years, as well as Gross Domestic Product (GDP) growth of 1%, pulling the UK out of the longest double-dip recession since World War II.
It is thought the increase in jobs, revealed in the BRC-Bond Pearce retail employment monitor, was driven by part-time workers. While the number of outlets and full-time jobs in non-food retailing fell, 68% of retailers suggested they would increase staffing levels in the run-up to Christmas.
BRC director general Stephen Robertson said: ""The strongest retail jobs growth for two years looks like another reason for optimism. With good news about employment generally, signs that disposable incomes, consumer spending and inflation are moving in the right direction and expectations that we're about to see GDP growth return to positive territory, there's a sense that things could be getting better. That offers hope as the crucial Christmas trading period gathers pace.
"But it's important not to get too carried away. Our headline figures hide wide variations in retail performance. All the growth in jobs and shop numbers is coming from the food sector. In non-food retailing employment is flat and shops are closing down."
The news comes as the Office for National Statistics revealed the strongest GDP growth in five years during the three months to September 2012.
The ONS attributed the growth to economic activity generated by the London Olympic and Paralympic Games over the summer, as well as the fact the growth rate was based on the level of GDP during Q2 2012, which had fewer working days due to the Diamond Jubilee.
Sales of Olympic tickets increased GDP growth in the quarter by 0.2%. Retail, however showed "little evidence of any significant Olympics or Paralympics effect," according to the ONS.
According to the government body, it means the British economy has now grown by 0.3% so far this year, meaning it is flat compared with this time last year.
The Chancellor of the Exchequer George Osborne has said the economy still has "a long way to go, but these figures show we are on the right track."