Do new supermarkets really create jobs?
Thursday, August 5th, 2010A new piece of research has been published by the ACS (Association of Convenience Stores).
It challenges the way supermarkets tell planners that their big new stores will create new jobs.
It outlines for the first time why planners, councils, the media and the public should take their figures with a teaspoon of salt.
Its conclusions are:
- The assumption that job creation figures can be taken as an indicator positive employment impact is fundamentally flawed. It needs to be addressed through a number of approaches:
- Systematic use of ‘full time equivalent’ (FTE) jobs - because simple head count job creation figures are misleading. The body of evidence from academics and practitioners supporting the use of FTE calculations is overwhelming. Thiswould enable planners to appreciate the reality of expected employment.
- Using an 18 month time frame to consider employment impacts - becuse it takes time to see the impact. This will allow the incremental effect on existing businesses to be considered.
- Use of a standardised methodology for calculating job losses: Job losses caused by new developments are difficult to predict. However, a standardised methodology to calculate the anticipated job destruction associated with a development will help ensure that approving a planning application will not impair the vitality and viability of the local area.
- Job creation is clearly high on the agenda of many planning authorities looking to stimulate economic development.
- However, when assessing applications, planners should be extremely cautious of being seduced by the promise of job creation in hard times.
- Not only are these figures misleading but the reality could actually be a net loss in jobs down the track and the destruction of small businesses and entrepreneurs capable of generating exactly that economic development.
Download Job Creation Claims in New Supermarket Retail Developments.



