Job losses rise in retail

Worried High Street retailers are culling jobs at the quickest pace for two years with little sign of a Christmas spending splurge from worried shoppers so far, the CBI warned today.

Its latest distributive trades survey painted a grim picture on the High Street, with November marking the bleakest month for the industry since March 2009.

It comes days after Top Shop and BHS billionaire Sir Philip Green said he could close up to 250 stores, blaming a mild autumn and weak consumer confidence.

The CBI's survey revealed just 13% of firms hiring in November, compared to 40% who are shedding staff. The resulting balance of minus 27% is the worst since November 2009.

The figures echo earlier gloom from the British Retail Consortium, which said last month that the sector is employing around 23,000 fewer staff than a year ago.

Around a third of the three million staff working in retail are younger than 25 so the hiring caution is also pushing up youth unemployment.

Ian McCafferty, the CBI's Chief Economic Adviser, said: "Retailers remain hard-pressed, even as we get closer to Christmas.

Retailers may be hoping that shoppers will loosen their purse strings in the run up to Christmas, but consumers are likely to remain cautious about spending given the uncertain economic outlook."

IHS Global Insight's Howard Archer said the figures were "pretty dismal".

"Retailers are finding it very hard to get pressurised and worried consumers to part with their cash this Christmas," he added.