UK retail faces potential loss of 160,000 part-time jobs: BRC

The British Retail Consortium (BRC) has issued a stark warning about the potential impact of rising employment costs and upcoming regulatory changes on part-time jobs in the retail sector. With retail standing as the UK’s largest private sector employer, these changes could have a profound effect on local economies and job opportunities, particularly for students, parents, and seasonal workers.

According to the BRC, there are currently over 1.5 million part-time jobs in retail, accounting for just over half of all employment in the industry. However, up to 160,000 of these roles could be at risk over the next three years due to increasing employer costs.

Measures introduced in the latest Budget, including higher employer National Insurance Contributions (NICs) and the National Living Wage, are set to add an estimated £5 billion (~$6.35 billion) to retailers’ labour costs in 2025 alone.

A major concern is the reduction in the employer NICs threshold, which will see businesses taxed for employees earning more than £5,000 (~$6,350) annually, down from the current level of £9,100 (~$11,557). This shift will disproportionately impact part-time workers, making it significantly more expensive for retailers to maintain their current workforce levels. Proposed amendments under the Employment Rights Bill could further limit firms' ability to provide local, flexible jobs, exacerbating the issue.

The retail sector serves as a crucial entry point into the workforce for young people, with nearly one-fifth of retail employees under the age of 25. The loss of part-time and entry-level jobs could make it significantly harder for students and young workers to gain valuable work experience and financial support during their studies, BRC said in a press release.

In response, the BRC has launched its 2025 Manifesto for Retail, outlining measures aimed at fostering growth, supporting employment, and ensuring sustainability across the industry. The organisation is calling on the government to reconsider policies that could jeopardise thousands of jobs and disrupt the retail workforce at a critical time.

“Retailers face a mountain of costs from the Budget and while they continue to absorb costs where they can, higher prices and job losses are inevitable. If the government can find ways of mitigating the £7bn of costs facing the industry this year, as well as ensuring a pragmatic approach to the Employment Rights Bill that focuses on tackling unscrupulous employers, protecting employees while supporting employment, then many jobs would be saved,” said Helen Dickinson, chief executive at the British Retail Consortium.

Fibre2Fashion News Desk (HU)