Story Highlight
– UK retail employment continues steady decline, now 2.75 million.
– Employment down 62,000 from previous year, lowest on record.
– Part-time retail roles at lowest recorded level.
– Rising employment costs significantly impact retail job availability.
– Initiative aims for 100,000 job opportunities for young people.
Full Story
Recent statistics from the Office for National Statistics (ONS) indicate a continuing decline in employment within the UK’s retail sector.
As of June 2026, the retail industry employed 2.75 million workers. When examining the four-quarter average—an indicator that accounts for seasonal employment fluctuations—retail jobs averaged 2.78 million in the year leading to the second quarter of 2026. This figure reflects a decrease of 62,000 from the preceding year, a drop of 122,000 compared to two years prior, and a staggering reduction of 410,000 from a decade ago, representing the lowest recorded average for this timeframe.
Among this workforce, the four-quarter average reveals 1.29 million full-time positions, coupled with 1.50 million part-time roles, the latter reaching its lowest level on record. Despite the ongoing downturn, retail continues to be the largest employer in the private sector, surpassing the hospitality sector, which employs 2.62 million, and manufacturing, which has 2.35 million employees.
One of the primary contributors to the deterioration in job numbers is increasing employment costs. Revisions to National Insurance contributions outlined in the 2024 Budget, which took effect in April 2025, have imposed an additional financial burden of approximately £2.3 billion on retailers. Alongside two consecutive wage increases above inflation for the National Living Wage, overall employment expenses in the retail sector have surged by £6.5 billion within the span of two years.
Helen Dickinson, chief executive of the British Retail Consortium, has expressed serious concerns regarding the impact of these job losses on young people seeking their first career opportunities. She noted, “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.”
Dickinson emphasised that these job reductions are not coincidental, attributing them to escalating employment costs that the sector is grappling with. She said, “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.”
In response to these challenges, retailers are taking proactive steps to assist young people facing barriers to employment. The “Opening Shift” initiative has already seen commitments for over 11,000 work experience placements, with aspirations for further expansion. The industry aims to generate 100,000 jobs for youths but insists that government policy must align with this goal by fostering a conducive environment for job creation rather than imposing additional challenges. Dickinson urged, “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.”
