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UK Retail Jobs at Risk Over Soaring Employment Costs
19 Feb
Summary
- Employment costs are now a top concern for 84% of retail finance chiefs.
- Over half of retailers plan job cuts at head office and shops.
- Youth unemployment has reached an 11-year high of 16.1%.
The spiralling cost of employment is creating a bleak outlook for jobs and investment on the UK High Street. A recent report indicates that 84 per cent of retail finance chiefs now identify employment costs as a primary concern, a significant increase from last year.
As a result, a majority of retailers are planning to reduce staff hours and overtime. More than half intend to cut head office jobs, and 42 per cent are considering redundancies on the shop floor. This is occurring while youth unemployment has surged to a concerning 16.1 per cent, an 11-year peak.
Concerns are mounting over the impact of Labour's policy to equalise minimum wage rates for younger workers. The cost of employing an 18- to 20-year-old rose by over 20 per cent last year. Retailers also face additional pressures from rising business rates and energy bills, alongside upcoming changes from the Employment Rights Act.
Industry leaders urge the government to review the cumulative effect of the minimum wage, national insurance, and new employment legislation. The goal is to ensure these measures encourage, rather than hinder, businesses from hiring young people and to safeguard job opportunities.
