UK risks ‘jobless generation’ as retail hiring plummets
A leading industry body has warned the UK faces a “jobless generation” as the number of jobs in retail fell to a record low.
There were 2.8m retail jobs in 2025, according to the Office for National Statistics’ four-quarter average, which smooths out seasonal variations in hiring, which is 383,000 fewer than in 2015.
The British Retail Consortium (BRC) has warned the loss of jobs in the retail sector threatens the routes into employment which many young people rely on.
There were 1.28m full-time retail jobs in 2025, according to the ONS, which is 140,000 fewer than a decade ago.
Part-time jobs in the industry are down 242,000 in the same period, to 1.52m last year.
Helen Dickinson, chief executive of the BRC, said: “People everywhere are struggling to find jobs, youth employment is falling faster still, and the UK faces the prospect of a jobless generation.
“One in five people had their first job in retail, yet this vital step on the career ladder is cracking under the high costs of employment.”
Flexible retail work at risk
Retail bosses have warned in recent weeks that Labour’s incoming workers’ rights reforms risk threatening the viability of flexible work, which is often relied on by young workers.
As many as 780,000 young Brits work in retail, accounting for 28 per cent of the industry’s workforce, making this sector the UK’s largest gateway into work, the BRC said.
The BRC’s warning comes as the number of young people not in education, employment or training nears one million.
The chief executive of retail giants Monsoon and Accessorize said last month the government must implement its employment reforms carefully.
“The Act risks applying rigid contract requirements that would make it difficult to flex working hours to meet the seasonal demand inherent in retail,” Nick Stowe wrote in CityAM.
“If we get this right, we will have a once in a generation opportunity to strengthen worker rights whilst enabling retailers to continue investing, regenerating communities and creating opportunity across the country,” he said.
The total number of payrolled employees in the UK dropped by 49,000 in February but rose slightly in January, according to ONS statistics.
The number of vacancies fell to 721,000 and the unemployment rate remained at 5.2 per cent.