New employment reforms risk reducing flexible entry-level jobs relied upon by young people the British Retail Consortium (BRC) warns.
The warning follows the passage of the Employment Rights Act, which received Royal Assent in December and aims to strengthen job security and improve working standards. While businesses support the legislation’s ambitions, industry leaders say poor implementation could unintentionally reduce opportunities for younger workers.
The issue could extend beyond retail into other sectors that depend heavily on flexible and part-time roles, including estate agency, property management, hospitality and other service industries that often provide early career experience.
The concerns come as the Office for Budget Responsibility forecasts UK unemployment to reach 5.3% this year. Youth unemployment among 16–24 year olds has already climbed to 16.1% – its highest level in more than a decade – which Alan Milburn, Chair of the Independent Review into Youth and Work, has described as an “existential crisis”.
FLEXIBILE WORKFORCE
New BRC data shows that 70% of Gen Z workers aged 18–29 say flexibility at work is important to them, rising to 73% among those working part-time.
Many younger workers actively choose flexible roles while balancing education, caring responsibilities or gaining their first experience of the workplace.
Retail currently provides around 780,000 jobs for people aged 16–25, accounting for 28% of the sector’s workforce and making it the UK’s largest gateway into employment.
However, the BRC says rising employment costs are already affecting hiring decisions. Since April last year, the cost of employing a full-time entry-level worker has increased by around 10%, while costs for part-time employees have risen by more than 13%.
Survey data from the organisation shows that 52% of retail chief finance officers plan to reduce hours or overtime in response to the rising costs, while 32% expect to freeze recruitment.
JOB CREATION FEARS
Helen Dickinson, Chief Executive of the British Retail Consortium, says: “Local, flexible jobs are important first steps into work for young people across the country.
“Whether it is a Saturday job to earn extra cash around studies or doing shifts while balancing caring responsibilities or other life commitments. These roles are relied upon and valued by so many.
“Retailers want the Employment Rights Act to live up to its ambition and raise standards and improve job security.
“But at a time when youth unemployment is high and rising, Government must ensure reforms double down on tackling bad practices and don’t choke off the routes into a first job for the next generation.”
