Retail employment went up by 2.1% in the third quarter of 2010 compared with the same period in 2009, according to the latest BRC-Bond Pearce Retail Employment Monitor.
This is equivalent to a net increase of 12,746 retail jobs, driven by a 4.2% net increase in the number of stores in the three months to September 2010 - an additional 652 retail outlets.

The monitor shows 61% of retailers surveyed intend to increase staffing levels in the next three months, compared with 54% this time last year, while 39% indicated they would keep staffing levels unchanged.

There were no retailers suggesting that they would reduce staffing levels in the next quarter, compared to 8% last year who planned to reduce staff levels.

British Retail Consortium director general Stephen Robertson said: "British retail is the engine room of economic recovery. This is the tenth consecutive month of retail employment growth, which is an impressive effort in tough trading conditions."

He called the increase in retail jobs "up-to-the-minute evidence that retailers are continuing to invest in new premises and people".

Bond Pearce's head of retail employment Christina Tolvas-Vincent added: "Coming in the same week as the second major GDP growth surprise in a row, the results of our latest monitor again demonstrate the vital role that the retail sector is playing in driving economic recovery.

"Retailers are now steeling themselves to withstand and absorb the cuts to the public sector and the next two quarters will severely test that resolve. As the cuts bed in, and with a rise in VAT on the horizon, the impact on consumer confidence remains to be seen - however retailers remain upbeat and positive in the lead up to Christmas."