Tamworth and Armidale Shop, Distributive and Allied Employees Association (SDA) representatives are demanding a five per cent wage increase for retail workers.

SDA NSW branch secretary Bernie Smith claims workers in the sector have had to deal with extreme stress and high workloads over the past couple of years, and deserve to be rewarded for it.

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"Retail workers were essential in carrying us through the pandemic," he said.

"They served us at the supermarket when we needed them. They made sure we got our petrol when we needed it. They made our meals, organised our deliveries, and kept us safe.

"We needed them. Now, with the cost of living rising so fast, these essential workers need a decent pay rise on 1 July."

To back up its claims, SDA used recently published data by independent think tank Per Capita, which estimated retail workers across the Tamworth and Armidale local government areas contribute more than $225.5 million to rural economies per year.

That works out to just more than $1000 per week for each retail worker in the region. While that may seem high, Per Capita's report outlines reasons as to why the outlay is larger than in other sectors.

"Due to the demographic makeup of retail workers, who tend to be younger and in lower income categories, the vast majority of this money will be spent very quickly and mostly in the local economy," its report stated.

But Mr Smith said if that money is going to continue being spent in local restaurants, cafes and clubs as opposed to just on essentials, then a wage increase is necessary.

"Wages have failed to keep up with the rising cost of living. This puts increasing pressures on workers who need to pay for food, housing, childcare, and more," he said.

"Retail workers are a pillar of the Armidale and Tamworth's economy and any pay rise they get will be spent back in their local economy."

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