The British Retail Consortium (BRC) has released a report highlighting the significant decline in retail employment, with job loss exceeding 350,000 since 2015.
This drop is nearly tenfold the entire employment in the UK steel industry, which has seen substantial government action to avert factory shutdowns and preserve jobs.
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According to the Retail Employment in 2025 report, upcoming regulatory measures may continue to suppress job growth in the retail industry into 2025 and potentially for longer still.
Despite the retail sector shedding a number of positions, in the BRC’s view policy interventions have been notably absent.
Retail is grappling with an increasing tax, cost and regulatory burden, unlike other sectors such as fishing, steel manufacturing and automotive, which have received more government support.
Adjustments to employer National Insurance contributions have imposed a £2.4bn financial burden on the retail industry, and the rise in the National Living Wage in April has added another £2.7bn to retailers’ wage expenses.
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By GlobalDataSince that time, the expense of hiring a full-time entry-level employee has increased 10.3%, and the cost for part-time staff by 13.5%.
The retail sector is the UK’s largest private sector employer with a workforce characterised by youth and diversity. Latest figures from the Office for National Statistics indicate that as of the fourth quarter of 2024 reveal that it employs 2.9 million people and supports an additional 2.7 million jobs within the supply chain.
Retail jobs offer significant flexibility and are a crucial source of local employment. With more than 1.5 million part-time positions, the sector allows individuals to work around personal commitments such as studies and childcare.
Retail also provides essential entry-level opportunities and flexibility for those re-entering the workforce. As a significant employer in nearly every parliamentary constituency, retail offers jobs not only in major cities but also in towns and villages nationwide.
The Employment Rights Bill, although intended to improve employment practices, could inadvertently increase costs and reduce employment without benefiting workers.
A survey of retail HR directors revealed that 61% believe the Bill would lessen job flexibility, and over half anticipate that it would lead to staff reductions in their companies.
However, there are potential opportunities ahead. The introduction of the new Growth and Skills Levy, set to replace the ineffective Apprenticeship Levy, may enable retail businesses to invest more in local communities and upskill their workforce, with an estimated 40% to 50% of employees in need of further training.
BRC CEO Helen Dickinson stated: “Retailers face uncertainty around the new Growth and Skills Levy, on the outcome of the business rates reforms and on implementation of the Employment Rights Bill which could make it more difficult to offer flexible part-time roles or reskill people. Reducing part-time and training opportunities in retail would not only be a loss to the industry, the UK’s largest private sector employer, but would also punish millions of people who benefit from these flexible, local jobs.
“We estimate 160,000 part-time roles – more than one-in-ten – in the industry are currently at risk from being lost in the next three years. But there is another way. If government can ensure future policies do not hold back recruitment and training, then they will reap the benefits through more jobs and better productivity. The Employment Rights Bill is the next big test: government must tackle unscrupulous employers without hampering employment opportunities offered by responsible businesses.”
