BRC warns Britain is “sleepwalking towards a jobless generation”

Chief Executive of the British Retail Consortium, Helen Dickinson, has warned that Britain is “sleepwalking towards a jobless generation.”

The comments come after the BRC and Opinium found that nearly half (49%) of the public believe younger unemployed people need more support from Government to get a job.

Official figures show youth unemployment has climbed to 16%, with 713,000 people aged 16-24 out of work.

Retail continues to be one of the country’s biggest gateways into work, employing around 2.8 million people, including 780,000 16-25-year-olds who account for 28% of its workforce.

The BRC is calling on government to introduce youth employment schemes and guarantee the implementation of the Employment Rights Act strikes the right balance in ensuring workers meaningful protection without adding unnecessary cost to hiring.

One key reason for this unemployment crisis is employment costs, making it harder for businesses to offer entry-level roles.

“Opportunities for young people are disappearing in front of our eyes. The reasons are clear: hiring is more expensive and businesses costs are soaring. The public want decisive action by government to get people — particularly young people — back into work. This is critical for their future, and the future of our economy,” Dickinson stated.

“Instead, we see government pushing up the cost of hiring, from last year’s National Insurance hike to poor implementation of parts of the Employment Rights Act. We are sleepwalking towards a jobless generation unless government halts the upwards spiral of employment costs and red tape.”

In the last two years businesses have faced two rises to the National Living Wage, a rise in the employer National Insurance Contributions (NIC) tax rate, and a drop in the employer NIC threshold for payment.

This has pushed up the costs of employment for retailers more than £6bn in two years.