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160,000 part-time retail jobs at risk in UK, warns BRC

Rising Costs Threaten 160,000 Part-Time Retail Jobs in the UK

BRC report on part-time retail jobs

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Between rising employer National Insurance Contributions, higher wage costs, and incoming employment regulations, up to 160,000 part-time retail jobs in Britain are at risk of being lost over the next three years, a retailer body has warned, calling on the government to find ways of mitigating the costs and protect the jobs.

The British Retail Consortium (BRC), which represents most of the UK's biggest retailers, said that rising employer National Insurance contributions (NICs) and a 6.7% jump in the national minimum wage will add 5 billion pounds ($6.3 billion) to retailers’ labour costs in 2025 alone, increasing pressure on the industry to reduce staffing levels.


BRC stated today (26) that one in ten of these jobs could be at risk of being lost over the next three years as a result of the rising costs of employment, driven by measures announced at the last Budget.

Retail remains a vital source of employment right across the country; it is the largest private sector employer and the industry and its supply chains account for over a third of local jobs in 20 per cent of parliamentary constituencies.

There are currently over 1.5 million part-time jobs in retail, a little over half of all retail jobs. This includes students making extra money during their studies, parents working around childcare, and seasonal workers providing vital support during the peak trading periods.

Part-time roles are particularly susceptible to the changes in the employer NICs, the BRC said. Retailers will be taxed for any employee earning more than £5,000, down from the current threshold of 9,100 pounds, making it significantly more expensive to hire part-time workers.

These effects would be compounded by some of the proposed changes under the Employment Rights Bill, which could force firms to reduce the number of local, flexible jobs. This would have the biggest impact on part-time workers, including seasonal and student jobs.

Almost one fifth of retail colleagues are under the age of 25, making the industry a vital first step on the career ladder for hundreds of thousands of young people. However, with up to one in ten part-time jobs at risk, in addition to many entry-level roles, many young people could miss out on these opportunities.

This call to protect part-time jobs comes as the British Retail Consortium launches its 2025 Manifesto for Retail, which outlines a path for the retail industry to help kickstart investment in growth, people, and sustainability across the UK.

Helen Dickinson, Chief Executive at the British Retail Consortium, said, “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 £4 billion a year on training.

"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.

“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 £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.”