Key facts
- Retail bosses have urged Prime Minister Sir Keir Starmer to implement measures to tackle youth unemployment.
- They warned that new employment laws and increased costs are making it harder to hire entry-level staff.
- The British Retail Consortium (BRC) highlighted concerns about the "ladder of opportunity" for young people.
- Youth unemployment is at an 11-year high, with job vacancies at a five-year low.
- Retailers are also concerned about Labour's proposed increases to national insurance contributions and changes to wage brackets.
Retail leaders have issued a stark warning to Prime Minister Sir Keir Starmer, stating that the "ladder of opportunity for young people is wobbling" and urging immediate government action to address rising youth unemployment. The British Retail Consortium (BRC), representing major supermarket and high street chains, has penned a letter expressing concerns that current policies and the complexity of new employment regulations are hindering the sector's ability to recruit and retain young talent.
The BRC highlighted that retail has historically served as a crucial entry point for individuals with limited qualifications and experience, enabling career progression. However, they argue that increased costs associated with hiring young people and recent changes to the Employment Rights Act are making it more expensive and complicated to manage the workforce. This, they contend, is impacting the industry's capacity to drive social mobility.
Retailers are particularly critical of Labour's proposed hike to national insurance contributions and plans to abolish aged-based wage brackets, which they believe further discourage entry-level recruitment. These concerns come in the wake of a report predicting a significant rise in young people out of work by the end of the decade, coinciding with an 11-year high in youth unemployment and a five-year low in job vacancies.
While analysis suggests that entry-level retail roles have seen a relative increase compared to some other professions, the overall trend points to a challenging environment for young job seekers. The government has acknowledged the impact of technology on employment by establishing an AI economics institute. Meanwhile, a debate is ongoing regarding the future of the Low Pay Commission, with concerns that direct lobbying of ministers on minimum wage rates could bypass economic considerations.