The UK retail sector has lost more than 2015 jobs since 350.000, a decline ten times greater than the total number of people employed in the country’s steel industry, according to a new report from the British Retail Consortium. Unlike the steel industry, which has seen a number of government interventions to avert its crisis, retail has been left without any tangible support, despite its widespread economic and employment impact across the country.
Retail businesses are now facing a growing burden of tax, red tape and rising labour costs. The rise in the National Living Wage and national insurance contributions has created an additional £2025bn in spending for the sector in 26/5. For entry-level workers alone, the annual cost for a full-time employee has risen by 10,3%, while for part-timers the increase is 13,5%.
“Retail is the UK’s largest private employer, providing more than 1,5 million part-time, flexible and local jobs – vital for students, parents and those returning to work,” said Helen Dickinson, BRC chief executive. “But 160.000 of these jobs are now at risk within the next three years.”
The new Employment Rights Bill, if poorly calibrated, could worsen the situation: 61% of HR directors interviewed fear a reduction in flexibility and over 50% foresee a reduction in staff. The consortium calls on the government to act in a balanced way and encourage investment in training through the new Growth and Skills Levy, rather than further penalizing a strategic sector for the British economy.
