The British Retail Consortium (BRC) has warned that opportunities for young people in retail could diminish if reforms intended to enhance worker security are poorly implemented, potentially reducing the availability of flexible, entry-level roles.
Recent BRC data indicate that 70% of Gen Z workers aged 18 to 29 consider workplace flexibility important, rising to 73% among part-time workers.
Rather than being viewed as a loophole or bad practice, flexible retail jobs are often preferred by individuals balancing studies, caregiving responsibilities, or seeking initial work experience.
This warning comes as the Office for Budget Responsibility forecasts that unemployment will reach 5.3% this year. Among 16 to 24-year-olds, youth unemployment has hit 16.1%, its highest level in over a decade.
It has been described as an “existential crisis” by Alan Milburn, who chairs the Independent Review into Youth and Work.
Retail is one of the most significant entry points into the labour market. About 780,000 retail jobs are held by individuals aged 16 to 25, accounting for 28% of the sector’s workforce and making the industry the largest gateway to employment for young people in the UK.
While the Employment Rights Act, which received Royal Assent last December, aims to boost job security and living standards—goals the retail industry largely supports—retailers are concerned about how this legislation will be implemented.
Industry leaders warn that a misguided approach to provisions, such as guaranteed hours, could lead to increased costs and administrative complexity. Since April of last year, the cost of employing a full-time entry-level worker has increased by 10%, while the cost of part-time roles has risen by more than 13%.
According to BRC survey data, 52% of leading retail chief financial officers plan to cut hours or overtime to offset rising employment costs, while 32% expect to freeze recruitment. Retailers warn that if the implementation of these reforms further raises costs or reduces flexibility, businesses may reconsider their hiring plans, with entry-level and short-hour roles likely to be the first to be reduced.
The BRC cautions that this could lead to fewer opportunities for the very young people the reforms aim to support. The organisation is urging the Government to ensure that the legislation targets genuine exploitation without compromising flexible working patterns. This includes acknowledging that hours available during seasonal peaks cannot always be sustained year-round and taking a practical approach to expectations around trade union access, as it may not accurately reflect a retailer’s workforce.
As secondary legislation moves toward consultation, the BRC emphasises the need for ministers to collaborate closely with the industry to prevent unintended consequences at a critical time for youth employment.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Local, flexible jobs are important first steps into work for young people across the country. Whether it is a Saturday job to earn extra cash around studies or doing shifts while balancing caring responsibilities or other life commitments. These roles are relied upon and valued by so many.
“Retailers want the Employment Rights Act to live up to its ambition and raise standards and improve job security. But at a time when youth unemployment is high and rising, [the] government must ensure reforms double down on tackling bad practices and don’t choke off the routes into a first job for the next generation.”
