It’s the economy, stupid — UK retail jobs continue grim decline

The latest figures from the Office for National Statistics show the extent of the decline of retail jobs in the UK economy in recent years.

Smoothing out seasonal variations in hiring by using the four-quarter average, there were 2.78 million jobs in retail in the year-to-Q2 2026, the lowest on record. This number is 62,000 down year-on-year, 122,000 fewer than two years ago, and 410,000 fewer than 10 years ago.

Although retail remains the largest private sector employer in the UK, the number of part-time retail jobs (1.50 million) is the lowest on record.

Frustrated and cynical commentators might point to the fact that when governments make it more expensive and difficult to hire people, fewer people get hired.

“Entry-level retail jobs are vanishing at the very moment they are needed most,” said a dismayed Helen Dickinson, chief executive at the British Retail Consortium. “With one in seven young people now not in education, employment, or training, the loss of 122,000 jobs in the last two years means tens of thousands fewer opportunities for young people to get their first step on the career ladder, build skills and earn a living.

“These job losses have not happened by accident. Retailers are being hit by a tidal wave of employment costs. In just two years, increases to National Insurance Contributions and the National Living Wage have added £6.5 billion in costs, while further employment reforms risk making it even harder to create and sustain jobs,” she continued.

“Retailers are going above and beyond to help young people and tackle the UK NEETs crisis. Through our new initiative ‘Opening Shift’, retailers have already pledged over 11,000 work experience places, with many more to come. 

“The industry aims to create 100,000 job opportunities for young people, but the government must match that ambition with policies that support job creation, not make it harder. Raising the NICs threshold to £6,000, which would help retailers invest, hire, and give thousands more young people that vital first step on the jobs ladder.”