This report examines the structure and workforce of the Retail trade industry. Topics covered include: an industry overview; industry performance and trends; forms and conditions of employment; and earnings and wage instruments.

The retail industry is relatively concentrated among large firms and profit margins are the lowest of any industry. On average, wages and salaries account for about 10 per cent of industry expenses. Over the three decades to 2008, output growth was similar to that of the broader economy, although recent business surveys indicate that economic activity in Retail trade is now declining.

Retail trade employs a relatively large proportion of low-skilled and low-paid employees, relying relatively heavily on industrial awards and Australian Pay and Classification Scales for setting rates of pay. Hourly earnings within the industry are highly concentrated in a narrow band.

Relative to the workforce as a whole, the industry contains high proportions of women and young people. The high rate of part-time work, which has grown very strongly over the past two decades with only modest growth in full-time employment, ensures a high incidence of casual employment. Retail trade workers are more likely than the workforce as a whole to be either unemployed or underemployed. They also have shorter average job tenure and are more likely than unemployed workers from any other industry to have voluntarily left their last job.