One in 10 part-time retail jobs at risk, warns industry
By Josh White
Date: Wednesday 26 Feb 2025
(Sharecast News) - As many as one in 10 part-time retail workers could lose their jobs as a result of upcoming regulatory changes, it emerged on Tuesday, in a stark warning from the industry as to the looming cost changes the UK's biggest-employing private sector.
According to the British Retail Consortium (BRC), up to 160,000 roles could be at risk of being lost over the next three years due to rising costs, driven by measures announced at the last Budget.
Those measures include increasing employer National Insurance contributions (NICs) and a higher National Living Wage.
"Retail is a key source of employment right across the economy - the industry and its supply chains account for a third of jobs in one-fifth of UK constituencies and retail plays a vital role in upskilling the workforce and boosting productivity growth, currently spending £4bn a year on training," said BRC chief executive Helen Dickinson.
"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."
The BRC said the impact of the changes would be felt disproportionately by part-time workers, who already accounted for nearly half of all retail jobs.
It warned that with the rising cost of employment, retailers might need to cut back on employment to stay afloat, which could have significant consequences for such vulnerable workers.
The BRC said it was particularly worried about the impact of new regulations, including changes to employer NICs thresholds and the Employment Rights Bill.
It noted that from next year, retailers will be taxed for employees earning more than £5,000 per year, making it significantly harder to hire part-time workers.
That, the industry body said, would disproportionately affect seasonal and student jobs, as well as many entry-level roles.
To address its concerns, the BRC said it had launched the '2025 Manifesto for Retail', outlining a plan to help kickstart investment in growth, people, and sustainability across the UK retail industry.
"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," Helen Dickinson added.
"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."
Reporting by Josh White for Sharecast.com.
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