One in 10 part-time retail jobs at risk by 2028, warns BRC

The British Retail Consortium (BRC) has warned that around 160,000, or more than one in 10, part-time retail roles are in danger of being lost over the next three years.

The warning follows a new report published by the BRC which lays bare the threats to retail employment, which has already plummeted by over 350,000 since 2015.

The trade association noted this is a fall nearly 10 times bigger than the total number of jobs in the steel industry, where the government has made repeated interventions to prevent factory closures and save British jobs.

It claimed 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 £2.4bn, while increases to the National Living Wage in April added a further £2.7bn 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%.

It said retail jobs are a “vital source” of flexible and local jobs. Retail offers over 1.5 million part-time jobs, allowing people to work around studies, childcare, and other life commitments. The BRC said these provide “essential” entry-level jobs for those taking on their first role and provide vital flexibility for those returning to the workforce.

The Retail Employment in 2025 report warns that future regulation could put a further 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.

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.

However, the BRC noted that the new Growth and Skills Levy, which replaces the broken 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, said: “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 by government, 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 the government is seeking to create: local investment, growth, and increasing the numbers of people in work.”

She added: “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 the 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: the government must tackle unscrupulous employers without hampering employment opportunities offered by responsible businesses.”