Regulations could further dampen UK retail jobs in 2025 & beyond: BRC

A recent survey of retail human resource directors showed that 61 per cent believed the bill would reduce flexibility in job offerings (versus 23 per cent saying flexibility will stay unchanged and 7 per cent saying such flexibility will increase), while over half believed it would reduce staff numbers for their company.

Retail employment in the United Kingdom has already reduced by over 350,000 since 2015. Over 250,000 of these jobs have been part-time roles and over 280,000 have been jobs held by women. This is despite the total number of jobs in the economy rising.

Employment costs have risen significantly, posing a major challenge to the UK retail industry. Over the last decade, the minimum wage has almost doubled from £6.50 per hour to £12.21 per hour for those over 21. This is far outpacing inflation, which has risen by around a third over the same time period, the report observed.

The rise in National Living Wage in April 2025 is expected to add £2.74 billion to wage bills of UK retailers.

Together, the changes to National Living Wage and employer national insurance contributions have raised the cost of hiring a full-time worker by 10 per cent, and a part-time worker by over 13 per cent.

The disproportionate impact on part-time workers, mainly as a result of the changing employer National Insurance minimum threshold, has meant that many flexible jobs are now at risk, with the BRC estimating that up to 160,000 part-time roles—more than one-in-ten—could be lost in the next three years.

Retail jobs of the future will be characterised by increased flexibility, technology integration, continuous skills development and a strong emphasis on inclusivity and diversity, ensuring a better work-life balance, noted the report.

Both the Growth and Skills Levy and the Employment Rights Bill will significantly affect how the industry drives future investment in its retail workforce, it added.

ALCHEMPro News Desk (DS)