New employment rules in the UK could reduce job opportunities for young people in retail, according to a warning from the British Retail Consortium.
The industry body says elements of the government’s new Employment Rights Act may unintentionally discourage hiring in entry-level and flexible roles widely used by younger workers.
Retail is the UK’s largest private-sector employer and a key gateway into work for many people aged under 25. Around 780,000 retail jobs are held by people aged 16–25, representing roughly 28% of the sector’s workforce.
The trade body argues that if the new labour rules increase costs or administrative complexity for employers, retailers may respond by cutting back on the part-time or short-hours roles often used by young people entering the labour market.
Helen Dickinson, chief executive of the BRC, said flexible retail roles remain an important starting point for many young workers. “Local, flexible jobs are important first steps into work for young people across the country,” she said.
“Whether it is a Saturday job to earn extra cash around studies or doing shifts while balancing caring responsibilities or other life commitments.”
Flexible retail jobs at risk
The new UK employment rules introduce a series of workplace reforms designed to strengthen employee protections.
These include the right for workers on low-hours or zero-hours contracts to request guaranteed hours, changes to statutory sick pay eligibility, and adjustments to dismissal rules.
Retail groups support efforts to tackle poor employment practices. However, they warn that the structure of the reforms may affect sectors that rely heavily on variable schedules, seasonal demand and part-time staff.
The BRC says retailers may reassess hiring plans if employment regulations increase operational costs or reduce flexibility in workforce planning. “Flexible and entry-level work would likely be the first to be scaled back,” the organisation said in its assessment of the policy changes.
Young workers are particularly reliant on these types of roles. According to the BRC’s research, around 70% of people aged 18–29 say flexibility at work is important, rising to nearly three-quarters among those in part-time employment.
Dickinson said many young people actively seek flexible schedules rather than viewing them as insecure employment. “These roles are relied upon and valued by so many,” she said.
Rising costs for retailers
Retailers are already dealing with rising operating costs, including higher wages, increased employer National Insurance contributions and other regulatory changes. Industry groups say these pressures are influencing hiring decisions across the sector.
Recent analysis from the BRC suggests the cost of employing a full-time entry-level retail worker has risen significantly in recent years, with additional increases expected as labour policies take effect.
Surveys of retail finance leaders show labour costs have become one of the industry’s top business concerns. Many companies are considering measures such as reducing staff hours, slowing recruitment or investing more in automation in response to the higher cost of employment.
Dickinson warned that policy implementation will play a critical role in determining the sector’s employment outlook. “Retailers want the Employment Rights Act to live up to its ambition and raise standards and improve job security,” she said.
“But if the government fails to consider business needs on policies including guaranteed hours and union rights, they will add complexity and reduce flexibility.”
Youth employment concerns
The warning comes as youth unemployment and economic inactivity among young people remain significant concerns in the UK labour market. Recent estimates suggest nearly one million people aged 16–24 are not in education, employment or training.
Retail has traditionally provided accessible entry-level jobs for students, school leavers and those seeking part-time work alongside study or caring responsibilities. Industry groups say maintaining these routes into employment is important for long-term workforce participation.
Dickinson said reforms must avoid unintentionally limiting opportunities for first-time jobseekers. “At a time when youth unemployment is high and rising, government must ensure reforms double down on tackling bad practices and don’t choke off the routes into a first job for the next generation.”
The UK government maintains that the Employment Rights Act will improve job security while still allowing employers and workers to agree working patterns that suit both sides. Officials say the legislation is designed to strengthen rights for millions of workers while supporting long-term employment stability.
For the retail sector, the key question will be how the rules are implemented in practice.
Industry groups say careful regulation could balance stronger worker protections with the flexibility that has traditionally supported entry-level retail employment.
