BRC warns that one in ten part-time retail jobs are at risk
The British Retail Consortium has warned that one in ten part time retail jobs could be at risk over the next three years due to rising employment costs, driven by measures introduced by the government in the last Budget.
Retail is the largest private sector employer in the UK with the industry and its supply chains accounting for over a third of local jobs in 20% of parliamentary constituencies. There are currently over 1.5 million part-time jobs in retail, a little over half of all retail jobs.
The BRC said that one in ten of these jobs, up to 160,000 roles, could be at risk of being lost over the next three years as a result of the increased costs of employment.
It also emphasised that part-time positions will be particularly affected by the upcoming change to employer National Insurance Contributions thresholds, with retailers now to be taxed on employees earning over £5,000, down from the current £9,100. This shift is expected to significantly increase the cost of hiring part-time workers, putting further pressure on retailers.
Never Miss a Retail Update!Helen Dickinson, BRC chief executive, said: “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 £7 billion 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.”
The BRC also highlighted how nearly one-fifth of retail staff are under 25, underscoring the industry’s role as a gateway for hundreds of thousands of young people beginning their careers. However, with up to one in ten part-time jobs and many entry-level roles at risk, it warned that young workers could see these opportunities disappear.
Dickinson added: “Retail has long offered the first rung of the career ladder to hundreds of thousands of young people, playing a vital role in communities up and down the country.
“However, between rising employer National Insurance Contributions, higher NLW costs, and incoming employment regulations, the government may be kicking away the ladder for the next generation. One in ten part-time retail roles are now at risk of being lost.”
