Retail employment falls to its lowest level on record

UK retail employment has fallen to its lowest level on record, following warnings from industry leaders that rising employment costs are reducing opportunities for entry-level and flexible work.

According to data published by the Office for National Statistics (ONS), employment averaged 2.79 million jobs in the first quarter of 2026, down 66,000 from a year earlier, and 398,000 lower than a decade earlier.

Of these jobs, 1.27 million were classified as full time, and 1.52 million as part time. In comparison with numbers recorded in 2016, full time roles have fallen by 163,000 and part time positions by 235,000.

The decline comes as the sector faces an additional £6.5bn in employment costs following increases to national insurance and the national living wage, according to BRC estimates. The British Retail Consortium has warned that these burdens are closing off opportunities for young people and reducing the flexibility options relied upon by students, parents and carers.

Helen Dickinson, Chief Executive at the British Retail Consortium, said: “The impact of rising employment costs cannot be ignored. Retail has long been the UK’s main job creator, but that is becoming harder to sustain. Employment has fallen to a record low as costs continue to rise.”

“For the young, the pressures are greater, with the number of young people not in education, employment, or training to reach 1.25 million over the next five years. Retail and its supply chain is almost a quarter of all youth employment. Flexible, entry-level roles that help people gain skills, confidence and experience and are a vital route into work, but rising employment costs and additional regulatory burdens are choking off opportunities at a time when they’re needed most.”

Ms Dickinson added: “If the government is serious about tackling youth unemployment, it must bring down the cost of employing young people and ensure employment reforms support entry-level recruitment and progression.”