Home' Employment Forecast : MyCareer Employment Forecast 2010 October Edition Contents Total Jobs
Although jobs have fallen in the Retail Sector on an annual basis, in the last quarter jobs growth returned (+0.7%). The modest
growth in retail sales (+3.6% in the year to July 2010) has supported this improvement.
The restaurant and cafe sub-sector is showing strong signs of sales growth, with turnover up more than 12% in the year to July.
This is now having an impact on the amount of food bought for home consumption, which although still growing in terms of sales
(+3.9% year ended July 10), is a far cry from the sales growth of 7.8% in the middle of 2009. One area that continues to struggle
is electrical goods retailing, with both sales and jobs falling despite extensive discounting.
Major retailers are gearing up for growth. Myer reported a good proft performance and expressed a confdent outlook, citing
better consumer demand and the development of new stores as contributing to growth. David Jones also posted a strong result,
with proft growing 9.1% in 2009/10. Similarly, Woolworths announced a double-digit proft growth, refecting improved conditions.
It is well advanced with its plan to enter the $24 billion home improvement sector by launching a new format in conjunction with
US hardware retailer Lowe’s. Ikea has also announced plans for store expansion in Australia, earmarking $600 million for six new
outlets over the next 10 years.
The states are mixed in their jobs records. Refecting the consistently strong economic growth in Victoria, retail jobs are growing
strongly. NSW and Queensland residents are still showing some reluctance to spend and this is refected in a softer jobs market.
WA is yet to show growth on an annual basis, although this refects a very weak frst six months of the 2009/10 fnancial year.
In the August 2010 quarter, employee numbers bounced back strongly, rising more than 9.2% from the February 2010 trough.
SA continues to be a steady performer.
There are more positive signs for the jobs outlook in the Retail Sector. Job vacancies are growing again although they are still
about half the peak of 2007. Business confdence on a trend basis has improved as well. Consumer confdence is now at levels
similar to those prior to the GFC, indicating that further recovery in sales and jobs growth is around the corner.
MyCareer Employment Forecast
With tills starting to ring again, jobs growth is returning to this sector
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