The number of jobs in UK retail has fallen to its lowest level on record, with the British Retail Consortium (BRC) warning that rising employment costs are making it harder for retailers to create jobs.
According to the latest ONS figures, there were 2.75 million retail jobs in June 2026. Using a four-quarter average to smooth seasonal variations, retail employment stood at 2.78 million in the year to Q2 2026 – down 62,000 on the previous year, 122,000 on two years ago and 410,000 on a decade ago.
The four-quarter average is the lowest on record, while the number of part-time retail jobs has also fallen to a record low.
There were 1.29 million full-time and 1.50 million part-time retail jobs on the four-quarter average. Despite the decline, retail remains the UK's largest private sector employer, ahead of hospitality at 2.62 million jobs and manufacturing at 2.35 million.
The BRC said retailers had faced a sharp increase in employment costs following changes to National Insurance contributions (NICs) introduced in April 2025, alongside two above-inflation increases in the National Living Wage.
It estimates that the NIC changes have cost retailers £2.3 billion, while the combined impact of NICs and increases to the National Living Wage has added £6.5 billion to retailers’ employment costs over the past two years.
Helen Dickinson, chief executive of the BRC, said entry-level retail jobs were “vanishing at the very moment they are needed most”.
“With one in seven young people now not in education, employment or training (NEET), the loss of 122,000 jobs in the last two years means tens of thousands fewer opportunities for young people to get their first step on the career ladder, build skills and earn a living,” she said.
Dickinson said the job losses had come as retailers faced a “tidal wave of employment costs”, while further employment reforms could make it harder to create and sustain jobs.
The BRC said retailers were nevertheless taking steps to support young people through its Opening Shift initiative, with retailers having pledged more than 11,000 work experience places.
The industry aims to create 100,000 job opportunities for young people, Dickinson said, but called on the government to support job creation by raising the NICs threshold to £6,000.
“This would help retailers invest, hire and give thousands more young people that vital first step on the jobs ladder,” she said.