One in ten part-time retail jobs at risk, BRC warns

The British Retail Consortium (BRC) has warned that one in ten part-time retail jobs could be lost over the next three years, with up to 160,000 roles at risk due to rising employment costs and regulatory changes.

Retail remains the largest private-sector employer in the UK, but businesses are facing significant pressure from recent government measures.

These include higher National Insurance Contributions (NICs) for employers and an increase in the National Living Wage (NLW), both of which will add £5bn to retailers’ labour costs in 2025 alone, pushing many businesses to reassess staffing levels.

Part-time jobs, which account for more than half of all retail positions in the UK, are likely to be particularly impacted by the changes. The introduction of new lower NICs thresholds for employers, which will tax any employee earning more than £5,000 (down from the previous £9,100), could make hiring part-time workers more expensive for businesses.

BRC CEO Helen Dickinson 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 £4bn a year on training.”

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Part-time jobs, which account for more than half of retail positions in the UK, are expected to be particularly affected. A new threshold for NICs will tax employers for any employee earning more than £5,000 (down from £9,100), making part-time roles more expensive to hire.

The introduction of the Employment Rights Bill could also lead to a reduction in flexible, local jobs, impacting part-time, seasonal, and student positions.

With nearly one in five retail workers under 25, the BRC expressed concern that younger workers, who rely on part-time jobs as an entry point into the workforce, may face fewer opportunities.

In addition to rising labour costs, retailers are expected to face an additional £7bn in expenses in 2025. The BRC is calling for a more balanced approach to regulatory changes, urging the government to mitigate the impact on job creation while still protecting workers’ rights.

Dickinson added: “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.”

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