Rising costs to blame for retail employment fall
The rising cost of employment has raised concerns that the number of entry-level and flexible job opportunities in retail will remain at significantly lower levels.
According to the latest ONS figures and using the four-quarter average to smooth out the seasonal variations in hiring, there were 2.79 million jobs for Q1 2026, 66,000 fewer than a year earlier.
This also relates to 398,000 fewer than in Q1 2016, delivering a four-quarter average which is the lowest on record.
Using the same process, there were 1.27 million full-time and 1.52 million part-time jobs. The number of full-time jobs is down 163,000 on a decade ago, while the number of part-time jobs is down 235,000 over the same period.
The declining retail employment comes as the industry as a whole faces an additional £6.5 billion in employment costs over a 14-month period as a result of increases to employer National Insurance Contributions and the National Living Wage.
Retail leaders have also raised concerns that aspects of the Employment Rights Act, if implemented without sufficient flexibility, could make it harder for businesses to offer the flexible and entry-level roles that many people rely on.
Reflecting on the update, Helen Dickinson, CCEO at the British Retail Consortium, said: “The impact of rising employment costs cannot be ignored. Retail has long been the UK’s main job creator, but that is becoming harder to sustain. Employment has fallen to a record low as costs continue to rise. At a time when the economy needs growth, retailers and households need policies that support job creation, not puts them at risk.”
She explained: “For the young, the pressures are greater, with the number of young people not in education, employment, or training to reach 1.25 million over the next five years. Retail and its supply chain is almost a quarter of all youth employment. Flexible, entry-level roles that help people gain skills, confidence and experience and are a vital route into work, but rising employment costs and additional regulatory burdens are choking off opportunities at a time when they’re needed most.”
Concluding: “If government is serious about tackling youth unemployment, it must bring down the cost of employing young people and ensure employment reforms support entry-level recruitment and progression. Retailers stand ready to work with government to help more young people take that crucial first step on the career ladder.”
Just last week Watch Insider reported on watch retail leaders from F. Hinds and Fraser Hart joining calls for action on youth unemployment.
You can read the full story on that HERE:
