More than 80 chief executives from leading UK retail businesses are calling on the government to take urgent action to address youth unemployment, warning that rising employment costs and tighter regulations are limiting entry-level hiring.
In a coordinated intervention led by the British Retail Consortium (BRC), senior retail figures said the UK risks losing a key pathway into work for young people at a time when long-term unemployment risks are rising.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Forecasts cited by industry leaders suggest up to 1.25 million young people could be out of work within the next five years if conditions do not improve.
Rising job costs
Retail leaders say the biggest pressure on youth hiring comes from higher employment costs. These include increases in National Insurance contributions, higher wage floors, and broader regulatory changes affecting recruitment.
Helen Dickinson, chief executive of the BRC, said the direction of policy is making hiring harder rather than easier. “If government is serious about tackling youth unemployment, it cannot keep making it more expensive to create jobs,” she said.
The BRC argues that entry-level roles, often filled by young workers, are becoming less financially viable for employers. It also estimates that around 400,000 retail jobs have disappeared over the past decade, reducing opportunities for first-time workers.
Retail is still one of the largest entry points into employment for young people in the UK, accounting for close to a quarter of youth jobs. But employers warn this role is under pressure if hiring costs continue to rise.
Calls for policy change
The letter signed by over 80 CEOs sets out a series of proposals aimed at improving youth employment outcomes and reducing barriers to hiring.
The first proposal is the creation of a joint government and retail taskforce to simplify access to entry-level jobs and improve pathways into work. The second is a call to reduce the cost of employing young people. The third focuses on upcoming employment and skills reforms, which industry leaders want designed to support rather than restrict recruitment.
Dickinson said retailers are ready to work with policymakers. “Retailers stand ready to work in partnership with government through a joint retail-government taskforce,” she said, adding that the aim would be to “strengthen routes into employment, remove barriers to hiring and help more young people take that crucial first step into the world of work.”
Industry leaders also warn that policies designed to improve job quality may unintentionally reduce opportunities for young people, particularly in part-time and flexible roles that are often their first jobs.
Industry voices
Senior executives from major UK retailers say the sector remains a crucial source of training, skills, and early career experience.
Tesco UK chief executive Ashwin Prasad said retail continues to play a central role in employment pathways, describing it as “one of the UK’s great engines of opportunity” and a place that provides “millions of young people a first step into the world of work”.
At Boots UK & ROI, senior vice president Anthony Hemmerdinger said his own career began at age 16 in retail. He highlighted its role in building confidence and skills, saying it gives young people “opportunities to experience the world of work and build their confidence and skills”.
Lidl GB chief executive Ryan McDonnell pointed to apprenticeships as a long-term route into employment. He said young workers “are the future of British retail” and stressed the importance of collaboration with government to “unlock new doors”.
Other businesses also backed the call. Specsavers noted that most of its apprentices move into permanent roles, while KFC UK & Ireland highlighted programmes aimed at supporting young people not in education, employment or training. H&M UK & Ireland and the Horticultural Trades Association also stressed that rising labour costs are affecting hiring capacity.
The intervention reflects growing concern across UK retail that the cost and structure of employment is reshaping entry-level hiring. CEOs say the sector is ready to expand opportunities, but only if policy conditions make youth recruitment more viable.
