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Retail staff face reduced hours or even losing their job as bosses continue to face up to rising government-imposed costs, according to an industry lobby group.
The British Retail Consortium (BRC) said its survey of finance chiefs in the sector found 61% were planning to reduce the number of hours and overtime for staff.
The body reported that 55% saw head office workers at risk while 42% were to target in-store roles amid a surge in pessimism on the outlook, despite 74,000 jobs already being cut over the past 12 months.
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The BRC said its study revealed a sharp rise in anxiety about labour-related costs, concerns that it said had “shot up the agenda” since the phased implementation of new employment laws got under way.
The survey’s findings risk exacerbating the growing sense of crisis over unemployment, with the UK’s jobless rate surging by more than a percentage point to 5.2% since Labour came to power.
It’s currently at a level not seen for almost five years.
The official figures have also shown youth unemployment at 16.1% – its highest figure since 2014 – and weaker pay awards across the private sector.
Businesses, especially in big employment sectors such as retail, have complained of higher costs since the pandemic, but their concerns have intensified since the 2024 budget.
The BRC said raised employer national insurance contributions, coupled with minimum wage hikes, imposed since last April, had added £5bn annually to the sector’s costs, harmed investment, pay awards and employment.
It calculated that the cost of employing a full-time entry-level worker rose by 10%, while that number rose to 13% for someone part-time.
At the same time, continuing cost of living pressures have harmed both essential and discretionary spending among consumers, exacerbating fears over the future of UK high streets.
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