Job loss predictions for downturn

Brighton's retail and leisure sectors will be worst hit in the recession, with low-paid employees feeling the impact most, a report has predicted.

Research group Centre for Cities said the south coast city could lose about 5% of its jobs in the downturn.

It said Brighton's retail and leisure sector accounted for 25% of employment, but also identified that its business services were vital to its future.

Brighton and Hove Council said it was working to limit the downturn's impact.

"It does not take into account growing parts of our economy such as expansion in creative and media industries"
Councillor Ted Kemble

The study found retail and leisure in the resort dubbed "London-by-the-sea" employed 33,200 people in 2007.

Its main shopping complex, Churchill Square, saw visitor numbers rise by 1% last year, with all of the stores being let, but occupants are predicting a tougher year ahead.

The future for the city's many small independent traders in the North Laine appears darker, with sales last November reported to be down by 10% on the previous year, it reported.

Many independent stores in Brighton are also struggling with rent rises while sales continue to fall.

The report recommended that Brighton should protect its independent retail sector.

Understanding line

The city council said the report's predictions for job losses were possibilities, not certainties. It said it had written to local banks urging them to take an understanding line and work with small firms that had cash flow problems.

Councillor Ted Kemble said the council was running marketing campaigns in Europe to attract visitors to spend the high-value Euro.

"The report was finalised too early to take account of our new Buy Local initiative, which is supporting the independent retailers the report identifies as most at risk," he said.

"Because it concentrates on the retail sector, it does not take into account growing parts of our economy which will help offset any job losses, such as expansion in creative and media industries.

"The creative sector is growing by around 5% a year - creating nearly 800 new jobs annually."

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