BRC slams UK government as retail sector loses ten times number of jobs than entire steel industry

A report published today by the British Retail Consortium flags the threats to retail employment, which has plummeted by over 350,000 since 2015. A fall nearly ten times bigger than the total number of jobs in the steel industry, where the UK government has made repeated interventions to prevent factory closures and save British jobs.

The BRC argues that, while the government has gone out of its way to support fishing, steel manufacture and the automotive industry, retail has instead been managing an ever increasing tax, cost and regulatory burden.

The changes to employer national insurance are costing the industry £2.4 billion, while increases to the national living wage in April added a further £2.7 billion to wage bills. Since April, the cost of employing an entry level full-time worker rose by 10.3%, while the cost of employing someone part-time rose by 13.5%.

In a press release, the BRC says: “Retail jobs are a vital source of flexible and local jobs. Flexible, because retail offers over 1.5 million part-time jobs, allowing people to work around studies, childcare, and other life commitments. They provide essential entry-level jobs for those taking on their first role and provide vital flexibility for those returning to the workforce. Local, because retail is a major employer in almost every parliamentary constituency, offering jobs not just in the major cities, but in every town and village across the country.”

The report warns that future regulation could put a further a dampener on retail jobs in 2025 and beyond. The Employment Rights Bill aims to improve employment practices, but there are many aspects of the bill which could increase costs and reduce employment without improving the life of workers, the BRC believes. A recent survey of retail HR directors showed that 61% believed the bill would reduce flexibility in job offerings (vs 23% “unchanged” and 7% “increased”), while over half believed it would reduce staff numbers for their company.

The new Growth and Skills Levy, which replaces the Apprenticeship Levy, could help retail businesses unlock more investment in local communities and in people given an estimated 40-50% of the workforce are in need of upskilling. This is vital to improve productivity and support economic growth.

Helen Dickinson, Chief Executive at the British Retail Consortium, says: “Over 350,000 retail jobs have been lost over the last nine years - more than is employed by the fishing, car production and steel manufacturing industries combined. Yet, while factory closures are met by promises of action, the wave of retail jobs losses has been met with indifference from policymakers.”

“UK retail is world leading, innovative, and a major contributor to the UK economy, yet the stranglehold of increasing costs, taxes and red tape risks undermining the very things government is seeking to create: local investment, growth, and increasing the numbers of people in work.”

“The swingeing rises to employers’ National Insurance, coupled with April’s increase to the National Living Wage, is costing retailers £5 billion in 2025/26. The cost of employing people in entry level jobs has risen by over 10% for full-time and 13% for part-time workers, which will undoubtedly reduce future job availability.”

“This matters: flexible retail roles are a vital stepping stone for many, whether it’s a first job out of school or a part-time role for those returning to the workforce or with caring responsibilities. As the government’s welfare reforms aim to bring more people back into the workforce, flexible retail roles offer many that first rung back onto the career ladder.”

“Retailers face uncertainty around the new Growth and Skills Levy, on the outcome of the business rates reforms and on implementation of the Employment Rights Bill which could make it more difficult to offer flexible part-time roles or reskilling people. Reducing part-time and training opportunities in retail would not only be a loss to the industry, the UK’s largest private sector employer, but would also punish millions of people who benefit from these flexible, local jobs.

 “We estimate 160,000 part-time roles - more than one-in-ten - in the industry are currently at risk from being lost in the next three years. But there is another way. If government can ensure future policies do not hold back recruitment and training, then they will reap the benefits through more jobs and better productivity. The Employment Rights Bill is the next big test: government must tackle unscrupulous employers without hampering employment opportunities offered by responsible businesses.”

2025 RTIH INNOVATION AWARDS

UK retail will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.