A new report published today
by the British Retail Consortium lays bare the threats to retail
employment, which has already plummeted by over 350,000 since
2015. A fall nearly ten times bigger than the total number of
jobs in the steel industry, where Government has made repeated
interventions to prevent factory closures and save British jobs.
While the Government has gone out of its way to support fishing,
steel manufacture and the automotive industry, retail has instead
been managing an ever-increasing tax, cost and regulatory burden.
The changes to employer National Insurance are costing the
industry a colossal £2.4 billion, while increases to the National
Living Wage in April added a further £2.7 billion to wage bills.
Since April, the cost of employing an entry level full-time
worker rose by 10.3%, while the cost of employing someone
part-time rose by 13.5%.
Retail jobs are a vital source of flexible and local jobs.
Flexible, because retail offers over 1.5 million part-time jobs,
allowing people to work around studies, childcare, and other life
commitments. They provide essential entry-level jobs for those
taking on their first role and provide vital flexibility for
those returning to the workforce. Local, because retail is a
major employer in almost every parliamentary constituency,
offering jobs not just in the major cities, but in every town and
village across the country.
The Retail Employment in 2025
report warns that future regulation could put a further a
dampener on retail jobs in 2025 and beyond. The Employment Rights
Bill aims to improve employment practices, but there are many
aspects of the Bill which could increase costs and reduce
employment without improving the life of workers. A recent survey
of retail HR directors showed that 61% believed the Bill would
reduce flexibility in job offerings (vs 23% “unchanged” and 7%
“increased”), while over half believed it would reduce staff
numbers for their company.
There are opportunities on the horizon. The new Growth and Skills
Levy, which replaces the broken Apprenticeship Levy, could help
retail businesses unlock more investment in local communities and
in people given an estimated 40-50% of the workforce are in need
of upskilling. This is vital to improve productivity and support
economic growth.
Helen Dickinson, Chief Executive at the British Retail
Consortium, said:
“Over 350,000 retail jobs have been lost over the last nine years
– more than is employed by the fishing, car production and steel
manufacturing industries combined. Yet, while factory closures
are met by promises of action, the wave of retail jobs losses has
been met with indifference from policymakers. UK retail is
world-leading, innovative, and a major contributor to the UK
economy, yet the stranglehold of increasing costs, taxes and red
tape risks undermining the very things Government is seeking to
create: local investment, growth, and increasing the numbers of
people in work.
yet the stranglehold of increasing costs, taxes and red tape
risks undermining the very things Government is seeking to
create: local investment, growth, and increasing the numbers of
people in work.
“The swingeing rises to employers' National Insurance, coupled
with April's increase to the National Living Wage, is costing
retailers £5 billion in 2025/26. The cost of employing people in
entry-level jobs has risen by over 10% for full-time and 13% for
part-time workers, which will undoubtedly reduce future job
availability. This matters: flexible retail roles are a vital
stepping stone for many, whether it's a first job out of school
or a part-time role for those returning to the workforce or with
caring responsibilities. As the Government's welfare reforms aim
to bring more people back into the workforce, flexible retail
roles offer many that first rung back onto the career ladder.
“Retailers face uncertainty around the new Growth and Skills
Levy, on the outcome of the business rates reforms and on
implementation of the Employment Rights Bill which could make it
more difficult to offer flexible part-time roles or reskilling
people. Reducing part-time and training opportunities in retail
would not only be a loss to the industry, the UK's largest
private sector employer, but would also punish millions of
people who benefit from these flexible, local jobs.
“We estimate 160,000 part-time roles – more than one-in-ten – in
the industry are currently at risk from being lost in the next
three years. But there is another way. If Government can ensure
future policies do not hold back recruitment and training, then
they will reap the benefits through more jobs and better
productivity. The Employment Rights Bill is the next big test:
government must tackle unscrupulous employers without hampering
employment opportunities offered by responsible businesses.”
-ENDS-
Download the report: Retail Employment in
2025
Data:
Job figures for other industries are from ONS Business Register
and Employment Survey, comparing 2015 with 2023 (the latest data
available). UK retail figures are from ONS Jobs 03 and Jobs 04,
between 2015 and 2024.
