A new report has warned that one in ten jobs in the º£½ÇÊÓƵ retail sector could be lost by 2028 due to escalating cost pressures.
The British Retail Consortium (BRC) has found that since 2015, over 350,000 retail jobs have been cut, a figure nearly ten times larger than the total number of jobs in the steel industry, as reported by .
Despite the government's "repeated interventions [in steel] to prevent factory closures and save British jobs," the retail sector has been burdened with increasing costs and bureaucracy, according to the BRC.
Amendments to Employer's National Insurance have resulted in a £2.4bn expense for the industry, while the rise in the National Living Wage in April added an extra £2.7bn to wage costs.
Since April, the cost of employing a full-time entry-level worker has surged by 10.3%, and part-time employment costs have risen by 13.5%, as per the BRC's findings.
BRC chief Helen Dickinson criticised the lack of action from policymakers in response to the wave of job losses in retail, stating, "While factory closures are met by promises of action, the wave of retail jobs losses has been met with indifference from policymakers."
She further commented on the state of the º£½ÇÊÓƵ retail sector, saying, "º£½ÇÊÓƵ retail is world-leading, innovative, and a major contributor to the º£½ÇÊÓƵ 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,".
According to the latest jobs report by Adzuna, the number of retail job vacancies has plummeted by 39% year on year.
Concern over workers rights overhaul
Businesses have expressed concerns that proposed measures such as the Employment Rights Bill, intended to address these issues, may not be beneficial.
Just over 60 per cent of retail HR directors are of the opinion that it will diminish flexibility in job offerings, while more than half anticipate it would lead to a reduction in their company's workforce.
Another survey revealed that seven out of ten business leaders believe the government's overhaul of workers' rights will negatively impact growth, with over half of those predicting the bill will have a "strong negative impact" on the economy.
Changes to statutory sick pay (SSP) and "day one rights" for new employees have been particular points of contention for businesses.
"Many retailers fear these changes will introduce significant additional costs for their business, which will ultimately lead to price rises for consumers and/or to headcount reductions," stated James Major, Partner at global law firm Clyde & Co..
Major also highlighted proposals to provide those on zero or low hours contracts with guaranteed hours, the potential for extra costs linked to unfair dismissal rights from 'day one' of employment, and proposed changes to collective redundancy obligations as challenges for the retail sector.
Dickinson suggested that if the government can "tackle unscrupulous employers without hampering employment opportunities offered by responsible businesses", they will "reap the benefits through more jobs and better productivity."
"But if they don't, they will end up "punish[ing] millions of people who benefit from these flexible, local jobs," she said.
