Unemployment to rise as shops plot staff cuts

Job losses are set to continue in the retail sector, due to the continuing economic malaise.

According to the Confederation of British Industry CBI, 49 per cent more retailers have cut staff, rather than keep numbers steady or increased them, over the past year.

This is the highest ratio measured by the business group since it began collecting the data in 1983.

Andy Clarke, chairman of the CBI distributive trades panel, said: "February was another tough month and sadly many retailers are cutting jobs as shoppers stay away and the recession deepens.

"But conditions were not quite as harsh as they were last month and in the run up to Christmas."

The CBI also found that 52 per cent of retailers experienced a decline in sales in January, putting further pressure on the firms to cut jobs in the future.

Unemployment stands at an 11-year high of 1.97 million, according to latest official figures.

Stock markets have declined to six-year lows, while the economy itself contracted by 1.5 per cent over the last quarter.

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2009-02-25 12:06:32 © Moneyextra.com