UK retail jobs at risk without government policy shift: BRC

The number of jobs in the UK retail sector fell to 2.88 million in December 2024, according to the latest figures from the Office for National Statistics (ONS), marking the lowest level since records began in 1996. This traditionally high employment period, driven by the Christmas trading season, failed to offset a broader downward trend across the year.

“The number of retail jobs in 2024 was the lowest since the data began in 1996, despite total jobs in the economy continuing to rise. While this decline in retail jobs should be a concern to communities everywhere, worse could be yet to come,” said Helen Dickinson, chief executive of the British Retail Consortium (BRC).

The four-quarter average for 2024 stood at 2.84 million jobs — a decrease of 70,000 compared to the same point in 2023, and 249,000 fewer than five years ago. A breakdown of the figures shows that the sector employed 1.50 million part-time and 1.34 million full-time staff on average, with both categories seeing significant reductions over the past five years. Full-time roles dropped by 106,000, while part-time positions declined by 142,000, BRC said in a press release.

A recent BRC survey of retail Finance Directors found that half were planning job cuts or hiring freezes, affecting both stores and head office operations across the UK.

Part-time roles appear particularly vulnerable. The sector has already lost 200,000 part-time jobs over the last seven years, with up to 160,000 more at risk over the next three years.

“Jobs cuts are likely to fall disproportionately on part-time roles. This matters: flexible retail roles are an important stepping stone for many people, whether it’s a first job out of school or a part-time role for those returning to the workforce or with caring responsibilities. As the Government’s welfare reforms aim to increase the numbers in work, flexible retail roles offer a first rung back onto the career ladder. Reducing part-time and reskilling opportunities in retail would not only be a loss to the industry, the UK’s largest private sector employer, but would also punish the millions of people who benefit from flexible, local jobs,” Dickinson said.

Dickinson said that measures introduced in last October’s Budget — including a rise in the National Living Wage and increased employer National Insurance contributions — had pushed retail wage bills up by more than £5 billion (~$6.4 billion), putting further pressure on hiring.

She urged the Government to align its welfare, skills, and employment policies to support the retail sector’s role in getting more people into work.

“If Government can ensure these policies help, rather than hinder, recruitment and investment in training, the industry can help provide routes back into work for those who need it. Government must join the dots on these different policies to create a win-win for employees, employers, and the wider economy,” Dickinson concluded.

Fibre2Fashion News Desk (HU)