Retail is helping more young people into work than any other sector, with nearly one in four beginning their careers in the industry, more than double the total for any other industry in the UK.
This additional job creation for young people contributes £7.4 billion in GVA, which is equivalent to 7 per cent of the retail sector’s total economic impact in 2024.
New research from M&S, conducted by the Centre for Economics and Business Research (CEBR), highlights not only the scale of youth unemployment, but the impact of mental health on young people:
- Currently 948,000 young people are not in Employment, Education, or Training (NEET), having reached the highest level in a decade in December 2024.
- 650,000 fewer 16-24-year-olds in employment compared to three decades ago.
- Long-term sickness – particularly growing mental health challenges – has driven 300,000 16–24-year-olds into economic inactivity since 2019, a 55 per cent increase on pre-pandemic levels and the highest of any age group.
While youth unemployment rates are rising, more than one in five (22 per cent) young people who are not in Employment, Education of Training say that securing a job is one of their biggest goals, according to The Kings Trust.
However, young people today face increasing barriers to employment with around one in six (16 per cent) young people being rejected for more than 50 jobs, knocking their confidence.
M&S is calling on the Government to work more closely with businesses to help get more young people into work. The firm believes that Employer NICs relief for businesses that employ the long-term unemployed or young people struggling to find work will unlock significant opportunities with The Jobs Foundation suggesting the move could create over 100,000 jobs.
M&S also wants the Government to deliver on its promise of Apprenticeship Levy reform so that more of the funds paid by businesses can be used to offer opportunities.
Marks & Spencer CEO Stuart Machin said, “Retail is a powerful engine of social mobility. At a time when so many young people are struggling to get their foot on the career ladder, this industry can give them that first crucial opportunity – particularly those facing the biggest barriers.
"As one of the UK’s biggest retail employers, we have already supported more than 12,000 young people through Marks & Start and we’re committed to doing our bit to get more young people into work. But we can’t do it alone – businesses need more support from the Government to unlock more opportunities for young people.
“Retail is a dynamic, fast-moving industry where no two days are the same. From working in stores or supply chain to food, fashion or finance and everything in between, it can open up so many opportunities. This is an industry that can give you responsibility from a young age and if you’re willing to work hard, you will go far no matter what your background.”
Jonathan Townsend, chief executive officer at The King’s Trust said, “Young people continue to face significant challenges to their employment prospects but there are so many young people who are ready to work and just need an additional support to make that happen.
"We rely on partners like M&S who invest in young people and create accessible routes to employment, helping us to achieve our mission of building the confidence and skills of young people who need us most.
“M&S has been a driving force behind our employability initiatives and we are so proud of our long-standing partnership, celebrating 20 years together to support 12,000 young people. With their pioneering approach and embedding our work across their organisation, we are able to remove employability barriers for thousands of young people helping to transform their futures.”