Retail employment in the UK has dropped to its lowest level in over a decade, with steep decreases across full-time and part-time roles, according to data and expert analysis.
Key pressures include rising employer costs and proposed legislation that may reduce hiring flexibility.
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Declining retail employment and part-time job losses
The Office for National Statistics (ONS) reported there were 2.73 million jobs in retail in June 2025.
Using a four-quarter average to smooth seasonal effects, that number falls to about 2.78 million, around 97,000 fewer than the same period a year earlier, and 393,000 fewer than in 2015.
Within those roles, full-time jobs have declined by 133,000 over the decade, while part-time jobs are down by 258,000 in the same period.
Cost pressures squeezing retail employment
Helen Dickinson, Chief Executive of the British Retail Consortium, said the rising cost of National Insurance Contributions (NICs) and increases in the National Living Wage (NLW) are placing a “hard hit” on the retail sector.
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By GlobalDataShe estimates these combined cost rises will total over £5bn this year.
Retailers face further risk from planned policy changes, including a new surtax on large retail premises and additional regulatory costs, which Dickinson warns could push more jobs out of the sector.
Regulatory changes and the Employment Rights Bill concerns
The Employment Rights Bill is under close watch. According to the Office for Budget Responsibility (OBR), the Bill is expected to have a “materially negative impact on employment”.
Dickinson echoed that view, arguing that the complexity introduced by the Bill will “drive up prices and hold back retail employment.”
Business groups such as the Institute of Directors have also raised alarms. In a survey, 72% of business leaders said the Bill and related reforms will harm growth.
Nearly half (49%) said they would be less likely to hire new staff, a third are considering outsourcing, and many expect increases in automation or redundancies.
Overall, the latest statistics suggest UK retail employment is under sustained pressure. Job losses over both the short and long term are being driven not just by economic trends but by rising regulatory and labour costs.
The autumn Budget is now being viewed by analysts and industry leaders as a pivotal moment: whether the Chancellor introduces further cost-burdens or eases pressure could significantly affect the future of retail jobs.
