The British Retail Consortium (BRC) has issued a stark warning that the UK retail sector could see up to 160,000 part-time jobs disappear.
The potential loss between 2025 and 2027, representing one in ten part-time retail roles, is attributed to the increasing costs of employment, which have been exacerbated by measures announced in the Autumn 2024 Budget.
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Retail is as the largest private sector employer in the UK, accounting for more than a third of jobs in 20% of parliamentary constituencies.
The sector is particularly pivotal for part-time workers, who occupy more than half of the industry’s positions.
These roles are often filled by students, parents balancing work with childcare and seasonal employees who are crucial during peak trading times.
According to BRC, Employer National Insurance Contributions (NICs) and the National Living Wage (NLW) are set to add an estimated £5bn ($6bn) to expenses by 2025. Consequently, retailers may be forced to reduce their workforce numbers.
Part-time positions are especially vulnerable due to adjustments in employer NIC thresholds. Employers will soon be taxed for any employee earning above £5,000, a substantial decrease from the current £9,100 level.
The change will make hiring part-time staff considerably more expensive.
Proposed amendments under the Employment Rights Bill could compel businesses to cut back on local and flexible job offerings, disproportionately affecting part-time workers such as seasonal staff and students.
The retail industry serves as a critical entry point for young individuals into the workforce; almost 20% of retail workers are under 25 years of age.
The risk to one in ten part-time jobs, along with many entry-level positions, poses a threat to the career prospects of many young people.
In response to these challenges, the BRC has unveiled its 2025 Manifesto for Retail. The manifesto outlines a strategy for stimulating investment and promoting growth, people and sustainability within the UK’s retail sector.
Through this initiative, the BRC aims to safeguard part-time jobs and ensure the continued vitality of the retail industry for future generations.
British Retail Consortium chief executive Helen Dickinson stated: “Retail is a key source of employment right across the economy. The industry and its supply chains account for a third of jobs in one-fifth of UK constituencies and retail plays a vital role in upskilling the workforce and boosting productivity growth, currently spending £4bn a year on training.
“Retail has long offered the first rung of the career ladder to hundreds of thousands of young people, playing a vital role in communities up and down the country. However, between rising employer National Insurance Contributions, higher NLW costs and incoming employment regulations, the government may be kicking away the ladder for the next generation. One in ten part-time retail roles are now at risk of being lost.”
