As of May, Nakumatt had not paid 1,555 of its employees and was forcing about 100 of its employees on compulsory leave. (Kenyans.co.ke, 2017.) Uchumi on the other hand has been in a bad place for years on end. However, it was not until recently that it’s employees also spoke up and about 1,300 union representatives presented their plight to the government. With this hurricane of events Data Fintech decided to look at retail employment data to see if this crisis was predictable by analyzing job creation in the sector and the level of salaries.
According to job market data by Data Fintech, job creation and job growth in the retail sector was suppressed in May 2017. The median salary of employees in the retail sector dropped by 57.14% to Ksh 22,500 while job creation simultaneously decreased by 66.67% between April and May 2017. It’s no surprise to see job postings on first Kenyan job board, Brightermonday.co.ke, reduce to single digits as the traditional retail industry is facing such turmoil. For employees who are seeking greener pastures, the best place to jump ship to is the trade and services sector, that has experienced a 76.67% growth in median salary that culminated to Ksh 35,357 between April 2017 and May 2017.
Evidently, the data shows that this crisis was foreseeable. If the all stakeholders in the sector had paid attention to data and facts they would have been able to predict and find smart ways to circumvent the crisis.
The study has been realized by Data Fintech, a Kenyan consumer data broker, based on data collected on Brighter Monday Kenya, the leading online job market platform in Kenya.