Rising employment costs and increasing regulation are making it harder than ever for retailers to hire new staff, the British Retail Consortium (BRC) has warned in response to a new report highlighting the growing number of young people out of work.
The comments came following the publication of the Alan Milburn ‘Young People and Work’ interim report on Wednesday (May 28), which revealed that nearly one million people aged 16 to 24 in the UK are currently not in education, employment or training (NEET).
The report also highlighted a sharp decline in entry-level opportunities, with around 1.6 million mid- and lower-skilled jobs disappearing from the UK economy over the past two decades.
Responding to the findings, Helen Dickinson, Chief Executive of BRC, stated that retail continues to play a critical role in offering employment opportunities to young people, with more than three-quarters of a million under-25s currently working in the sector.
However, the organisation warned that mounting financial pressures are making recruitment increasingly difficult.
“The first rung of the career ladder may have thinned, but retail continues to provide opportunities for over three-quarters of a million people under 25,” Dickinson stated.
“As the largest private-sector employer, the industry has an essential role in providing young people with experience, training, and a career path that sets them on the right track for life. Yet, it has never been more difficult to hire than today.”
The BRC noted that the retail industry has lost almost 400,000 jobs over the past decade, adding that higher employment costs and growing regulatory burdens are limiting businesses’ ability to recruit.
According to the trade body, the cost of employing someone in a full-time entry-level role increased by 10 per cent in April 2025, while part-time employment costs rose by an additional 13 per cent.
The organisation also raised concerns over aspects of the Employment Rights Act, warning that some measures could unintentionally reduce the number of entry-level opportunities available.
“The patchwork of support for jobseekers and employers is complex and often misaligned. Interventions like the Youth Jobs Grant and Jobs Guarantee are welcome but are held back by the massive rise in employment costs and regulations faced by businesses.
Calling for closer collaboration between policymakers and industry, the BRC said retailers have a “vital stake” in improving outcomes for young people and urged government to work alongside the sector to tackle the issue.
"In April 2025, the cost of employing someone in a full-time entry level job rose by 10%, and part-time an additional 13%. Implementation of aspects of the Employment Rights Act risk limiting more entry level jobs. Government must join the dots between tax, red tape, and its efforts to reduce unemployment.
“As the major employer of young people in the UK, retailers have a vital stake in their future. We welcome Alan Milburn’s stark and honest diagnosis of the issues and call on Government to work with us to help solve this challenge. Joining the dots across different policies and working with the industry, will help turn around the fortunes of young people everywhere," Dickinson said.