A payroll tax rise and the economic crisis mean retailers have had to cut staff to the bare minimum, according to Body Shop managing director Ellen Brown.Ms Brown said she had to slash prices in the crucial pre-Christmas period taking on extra roles herself so she didn’t have to spend on wages.And she said last year’s payroll tax increase knocked the company sideways because she had to pay extra tax on behalf of workers during a lean time.As experts continue to predict no end in sight for the recession, Ms Brown said she fears Bermuda could be about to see its first serious state of unemployment.“We had a number of people come in and say, please, we really need a job. I say, I’m sorry, I really can’t afford it. It hurts me because I don’t have a life any more,” Ms Brown told The Royal Gazette yesterday.“The thing that troubles me the most is I think Bermuda is going to see unemployment for the first time.“In the past we’ve had unemployment because people have chosen not to work. This year you are really going to see people looking for work but not able to get it.“A lot of my people, I would bring them back, but I’m not hiring at the moment. One who worked at Christmas, I told her I don’t need her this week.“I look at the figures and I look at what I could handle and I can’t take her on.”Ms Brown said three years ago she employed two full-time people, plus one or two part-time, as well as herself, during the festive period at her Washington Mall store; this Christmas she had no full-time staff and only one or two students working at any time.She says she managed to keep sales up by reducing prices, with the most expensive gift bag $89 compared with more than $100 in previous years, and by repackaging springtime stock as Christmas gifts.Last February, Government increased payroll tax from 14 to 16 percent, with Premier and Finance Minister Paula Cox saying businesses have reported it’s made them more innovative.Ms Brown argued: “That affected us hugely. It hit us sideways. I can’t afford to bring anybody on full-time. I took a pay cut myself because of it.”She added that Government could help by providing concessions so retailers can carry out maintenance of their stores.“I would love to re-do the front of my store but to bring somebody in to do that is going to cost thousands of dollars,” she said.“I have decided to hold that off until the economy picks up.”