Britain's retail industry has issued a stark warning to the government over the future of youth employment, with more than 80 major retail bosses arguing that rising taxes, wage costs and regulatory burdens are making it harder for businesses to offer entry-level jobs.
The intervention, led by the British Retail Consortium (BRC), comes amid growing concerns over youth unemployment and follows fresh warnings that up to 1.25 million under-25s could be out of work within the next five years.
Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), warned that retailers are being priced out of hiring young people as government taxes and red tape push up the cost of entry-level jobs.
In a letter co-ordinated by the British Retail Consortium (BRC), business leaders warn that government must take urgent action to tackle the deepening unemployment crisis, including bringing down the cost of employing young people, in order to “turn around the fortunes of young people everywhere.”
The intervention comes as Alan Milburn’s interim report into young people and work highlighted the scale of the challenge, warning that 1.25 million under-25s could become unemployed in the next five years.
Meanwhile, businesses face a cataclysm of rising National Insurance contributions, years of above-inflation increases to the National Living Wage, and changes to employment rights – policies which need to be revisited if Government really wants to shift the dial on youth unemployment.
Retail is the UK’s most important entry point into work, accounting for almost a quarter of all youth employment. Hundreds of thousands of young people secure their first job through the flexible, local, and seasonal opportunities that the industry provides.
But with 400,000 retail jobs already lost over the past decade, vital routes into employment could be at risk if policy decisions continue to increase the costs and risks of hiring.
Today, business leaders are calling on government to strengthen support for youth employment, bring down the cost of employing young people and ensure new employment and skills reforms do not undermine its own goals to combat the crisis.
The industry stands ready to work alongside government to deliver practical solutions that will help more young people access employment and create pathways for the next generation.
The letter calls on Government to:
1) Establish a joint government-retail taskforce to simplify and enhance routes into employment for young people.
2) Bring down the cost of employing young people to help businesses create more jobs.
3) Implement employment and skills reforms in a way that supports entry-level recruitment and progression.
Helen Dickinson, Chief Executive of the BRC, said: “The message from retail is clear: if government is serious about tackling youth unemployment, it cannot keep making it more expensive to create jobs.
“Retail and its supply chain account for almost a quarter of all youth employment, making our industry uniquely placed to support young people through flexible, entry-level roles and clear routes for progression. But this first step on the ladder is cracking under the weight of government-imposed costs and regulations.
“Youth unemployment is a challenge that government and business must tackle together. If government wants more young people in work, it must create the conditions that allow businesses to hire, train and develop the next generation.
"Retailers stand ready to work in partnership with government through a joint retail-government taskforce to strengthen routes into employment, remove barriers to hiring and help more young people take that crucial first step into the world of work.”