A new report published today by the British Retail Consortium lays bare the threats to retail employment, which has already plummeted by over 350,000 since 2015. A fall nearly ten times bigger than the total number of jobs in the steel industry, where Government has made repeated interventions to prevent factory closures and save British jobs.
While the Government has gone out of its way to support fishing, steel manufacture and the automotive industry, retail has instead been managing an ever-increasing tax, cost and regulatory burden. The changes to employer National Insurance are costing the industry a colossal £2.4 billion, while increases to the National Living Wage in April added a further £2.7 billion to wage bills. Since April, the cost of employing an entry level full-time worker rose by 10.3%, while the cost of employing someone part-time rose by 13.5%.
Retail jobs are a vital source of flexible and local jobs. Flexible, because retail offers over 1.5 million part-time jobs, allowing people to work around studies, childcare, and other life commitments. They provide essential entry-level jobs for those taking on their first role and provide vital flexibility for those returning to the workforce. Local, because retail is a major employer in almost every parliamentary constituency, offering jobs not just in the major cities, but in every town and village across the country.
The Retail Employment in 2025 report warns that future regulation could put a further a dampener on retail jobs in 2025 and beyond. The Employment Rights Bill aims to improve employment practices, but there are many aspects of the Bill which could increase costs and reduce employment without improving the life of workers. A recent survey of retail HR directors showed that 61% believed the Bill would reduce flexibility in job offerings (vs 23% “unchanged” and 7% “increased”), while over half believed it would reduce staff numbers for their company.
There are opportunities on the horizon. The new Growth and Skills Levy, which replaces the broken Apprenticeship Levy, could help retail businesses unlock more investment in local communities and in people given an estimated 40-50% of the workforce are in need of upskilling. This is vital to improve productivity and support economic growth.
Helen Dickinson, Chief Executive at the British Retail Consortium, said:
“Over 350,000 retail jobs have been lost over the last nine years – more than is employed by the fishing, car production and steel manufacturing industries combined. Yet, while factory closures are met by promises of action by government, the wave of retail jobs losses has been met with indifference from policymakers. UK retail is world-leading, innovative, and a major contributor to the UK economy, yet the stranglehold of increasing costs, taxes and red tape risks undermining the very things Government is seeking to create: local investment, growth, and increasing the numbers of people in work.
“The swingeing rises to employers’ National Insurance, coupled with April’s increase to the National Living Wage, is costing retailers £5 billion in 2025/26. The cost of employing people in entry-level jobs has risen by over 10% for full-time and 13% for part-time workers, which will undoubtedly reduce future job availability. This matters: flexible retail roles are a vital stepping stone for many, whether it’s a first job out of school or a part-time role for those returning to the workforce or with caring responsibilities. As the Government’s welfare reforms aim to bring more people back into the workforce, flexible retail roles offer many that first rung back onto the career ladder.
“Retailers face uncertainty around the new Growth and Skills Levy, on the outcome of the business rates reforms and on implementation of the Employment Rights Bill which could make it more difficult to offer flexible part-time roles or reskilling people. Reducing part-time and training opportunities in retail would not only be a loss to the industry, the UK’s largest private sector employer, but would also punish millions of people who benefit from these flexible, local jobs.
“We estimate 160,000 part-time roles – more than one-in-ten – in the industry are currently at risk from being lost in the next three years. But there is another way. If Government can ensure future policies do not hold back recruitment and training, then they will reap the benefits through more jobs and better productivity. The Employment Rights Bill is the next big test: government must tackle unscrupulous employers without hampering employment opportunities offered by responsible businesses.”
