Independent retailers say rising employment costs are reducing the number of entry-level retail jobs available to young people, as the number of people not in employment, education or training (NEET) in the UK has passed one million.
The warning comes from the British Independent Retailers Association (Bira) following the publication of the interim review into youth inactivity led by Alan Milburn. The review warns that, without action, the number of young people classed as NEET could reach 1.25 million within five years.
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Bira argues that independent retailers have traditionally provided many young people with their first experience of paid work through Saturday, evening and part-time retail jobs. It says rising business costs are making those roles increasingly difficult for small retailers to sustain.
Rising costs reduce hiring
According to Bira, higher National Insurance contributions, increasing business rates and elevated energy bills have combined to raise the cost of employing part-time staff, putting pressure on already tight retail margins.
“The harsh reality is that retail is not creating the entry-level jobs it once did,” said Andrew Goodacre, chief executive of Bira.
He added that increases in employer National Insurance contributions, business rates that continue to outpace inflation and higher energy costs have “eroded profit margins”, leaving “fewer opportunities for young people in retail”.
The comments reflect wider concerns across the retail sector about the impact of rising operating costs on recruitment. Industry bodies have previously warned that many retailers are reducing staff hours, delaying recruitment and scaling back investment as employment costs increase.
Saturday jobs in decline
The Milburn review highlights a long-term decline in entry-level employment across the UK economy. It found there are 1.6 million fewer low and medium-skilled jobs than in previous years, while apprenticeship starts among young people have fallen by 35% over the past decade.
It also points to a sharp decline in traditional Saturday jobs, which have historically provided an important route into employment for teenagers and young adults.
Bira said these early work opportunities help young people develop practical skills, gain workplace experience and improve their chances of securing long-term employment.
Goodacre welcomed proposals to encourage employers to recruit apprentices and people who have been unemployed for longer periods. However, he said the schemes must be easy for smaller businesses to use.
“We welcome incentives to employ people who are long-term unemployed and apprentices,” he said. “But to be truly impactful, these schemes need to be really easily accessible.”
Calls for simpler support
Bira is urging the government to ensure that employment support programmes are designed with independent retailers in mind, arguing that smaller businesses often lack the resources to navigate complex application processes.
The association represents more than 6,000 independent retailers across the UK and says small shops remain an important source of local employment. It believes reducing barriers to hiring could help retailers create more entry-level jobs while supporting efforts to tackle youth unemployment.
With the UK retail sector continuing to face higher employment costs and other operating pressures, Bira argues that restoring entry-level retail jobs will require both financial support for businesses and simpler employment schemes that small employers can access without excessive administration.
