New figures from the Office for National Statistics (ONS) are showing that UK retail employment is continuing its steady decline.
In June 2026, the sector employed 2.75 million people. Looking at the four-quarter average, a smoother measure that strips out seasonal hiring swings, retail employment stood at 2.78 million in the year to Q2 2026.
This is down 62,000 on the previous year, 122,000 lower than two years ago, and 410,000 below where it stood a decade ago, marking the lowest four-quarter average on record.
Within that total, the four-quarter average showed 1.29 million full-time roles and 1.50 million part-time roles, with part-time retail employment now at its lowest recorded level.
Despite the decline, retail remains Britain’s largest private-sector employer, ahead of hospitality (2.62 million) and manufacturing (2.35 million).
Rising employment costs are a major factor behind the fall. Changes to National Insurance contributions announced in the 2024 Budget and introduced in April 2025 added an estimated £2.3 billion to retailers’ costs.
Alongside two consecutive above-inflation increases to the National Living Wage, total employment costs for the sector have climbed by £6.5 billion over two years.
The British Retail Consortium chief executive Helen Dickinson has warned that entry-level retail roles are disappearing just as young people need them most.
“With one in seven young people now not in education, employment or training, the loss of 122,000 jobs in the last two years means tens of thousands fewer opportunities for young people to get their first step on the career ladder, build skills and earn a living.
“These job losses have not happened by accident. Retailers are being hit by a tidal wave of employment costs.
“In just two years, increases to National Insurance Contributions and the National Living Wage have added £6.5 billion in costs, while further employment reforms risk making it even harder to create and sustain jobs.
“They are going above and beyond to help young people and tackle the UK NEETs crisis.
“Through our new initiative ‘Opening Shift’, retailers have already pledged over 11,000 work experience places, with many more to come.
“The industry aims to create 100,000 job opportunities for young people, but government must match that ambition with policies that support job creation, not make it harder.
“Raising the NICs threshold to £6,000, which would help them invest, hire and give thousands more young people that vital first step on the jobs ladder.”
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