2010 will be ‘another tough year for employees’

The new year will continue to be tough for employees, business owners have warned.

While retailers do not expect trading conditions to deteriorate in 2010, many are predicting a rough ride for employees.

The British Retail Consortium’s 2010 Concerns Snapshot found that nearly 80% of businesses surveyed expect retail sales to stay the same in 2010 as they were in 2009, while around 20% thought that they would improve.

But despite a better-than-expected Christmas trading period, weak consumer demand tops retailers’ concerns for the new year, with many worried that it could lead to rising unemployment.

One third of retailers surveyed said that they would cut more staff in 2010, while just one in five expect to increase staff levels.

The British Chambers of Commerce (BRC)’s latest Monthly Business Survey drew a similar picture of business owners’ expectations, with 63% of respondents planning wage freezes or pay cuts in the new year.

Some 18% also said that they were considering the removal of employee benefits, such as bonuses and gym membership.

Stephen Robertson, director-general of the BRC, said: “It’s reassuring that our snapshot shows no retailers expect sales in 2010 to be worse than this year.”

But he added: “The inevitable tax rises will mean people have less to spend and retailers will have to work even harder to win the battle for hard-pressed customers.”

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