Retail jobs stoop to file low – fuelling fears of ‘misplaced era’ as entry-level alternatives for younger disappear

The number of retail jobs in Britain has slumped to a record low, fuelling fears of a ‘jobless generation’ of young people.

Fresh figures from the British Retail Consortium (BRC) come amid fears that youth unemployment will soar further as traditional first jobs in shops disappear.

There were an average of 2.81million retail jobs last year, which the industry group says is the lowest on record, and 68,000 fewer than in 2024.

Separate figures from the Office for National Statistics (ONS) show that the UK’s jobless rate stayed steady at 5.2 per cent in the three months to January- its highest rate in five years – driven by large numbers of young people out of work. 

The unemployment rate reached 14.5 per cent among 18 to 24-year-olds, while 19.2 per cent in the cohort are not in work or full-time education.

There are concerns over a ‘jobless generation’ of young people as the number of retail jobs hit a record low last year

Helen Dickinson, BRC chief executive, said: ‘People everywhere are struggling to find jobs, youth employment is falling faster still, and the UK faces the prospect of a jobless generation.’

Almost 400,000 retail jobs have been lost in the country over the past decade, she said, amounting to ‘the loss of hundreds of thousands of opportunities for young people to start earning for themselves.’

One in five people have their first job in shops, but ‘this vital step on the career ladder is cracking under the high costs of employment,’ Dickinson said.

Retailers face rises in wages and business rates in April, having already been hit with a hike in employment costs, including employer contributions on National Insurance, last year.

Rachel Reeves has announced help for pubs and live music venues on business rates – but not for the rest of the High Street.

Dickinson also expressed concerns that the Employment Rights Act could make it harder to employ young people for flexible, part-time and seasonal work.

She said: ‘Poorly designed changes to guaranteed hours could make it harder – not easier – for businesses to offer part‑time work, discouraging employers from creating the very roles young people, students, parents and carers all rely on.

‘The goal should be to tackle bad practice without making recruitment more complex, risky or expensive – especially at a time when the country urgently needs more routes into work.’

The unemployment figures reveal the weakness in the jobs market even before the war in the Middle East started weighing on energy prices.

Thomas Pugh, chief economist at audit, tax and consulting firm RSM UK said: ‘The risk is that rising energy prices prompt a big pull back in consumer demand, while simultaneously pushing up input costs for businesses, which would push the unemployment rate even higher. 

‘We now think the unemployment rate will probably peak at around 5.5 per cent, rather than staying around 5.3 per cent and then gradually declining. If energy prices continue to rise in the same way as in 2022, the unemployment rate could trend towards 6 per cent.’