M&S calls on gov to tackle youth unemployment 

Marks and Spencer (M&S) has urged the government to work more closely with businesses to help reduce youth unemployment, whilst calling for National Insurance relief for employers who hire long-term unemployed or disadvantaged young people.

M&S has also renewed calls for reform of the Apprenticeship Levy to allow companies greater flexibility in using funds to provide training opportunities.

It comes as research from M&S and the Centre for Economics and Business Research (CEBR) found that retail is helping more young people into work than any other sector.

The study found that nearly one in four young people begin their careers in retail – more than double the share of any other industry in the UK. 

The report estimates that these jobs contribute £7.4bn in gross value added (GVA), equal to around 7% of the retail sector’s total economic impact in 2024.

CEBR’s analysis also highlighted continuing challenges around youth unemployment and mental health. As of December 2024, 948,000 young people were not in employment, education or training – the highest level in a decade. 

There are 650,000 fewer 16- to 24-year-olds in work than three decades ago, while long-term sickness and mental health issues have pushed 300,000 young people into economic inactivity since 2019, a 55% increase on pre-pandemic levels.

The King’s Trust has reported that 22% of young people who are not in work, education or training see getting a job as a key goal. However, around one in six say they have been rejected from more than 50 job applications, which has affected their confidence.

M&S said it is committed to supporting young people who face barriers to entering the workforce. The retailer’s Marks and Start scheme, launched more than two decades ago with The King’s Trust, provides a four-week work experience placement to help participants build skills and confidence.

According to M&S, more than 12,000 young people have taken part in the scheme, with plans to support a further 2,000 over the next three years. The company said 91% of participants completed the programme this year, while 88% were offered a permanent job – both five-year highs.

Mental health remains a key obstacle for many, with 28% of young people saying it has stopped them from applying for jobs. M&S said it has worked with the mental health charity YoungMinds to review and improve its training materials, ensuring participants receive additional wellbeing support. Since beginning the partnership two years ago, M&S has raised £4.4m for YoungMinds, which the charity says has helped reach more than six million young people.

Marks and Spencer CEO Stuart Machin said: “Retail is a powerful engine of social mobility. At a time when so many young people are struggling to get their foot on the career ladder, this industry can give them that first crucial opportunity – particularly those facing the biggest barriers. 

“As one of the UK’s biggest retail employers, we have already supported more than 12,000 young people through Marks & Start and we’re committed to doing our bit to get more young people into work. But we can’t do it alone – businesses need more support from the Government to unlock more opportunities for young people.” 

He added: “Retail is a dynamic, fast-moving industry where no two days are the same. From working in stores or supply chain to food, fashion or finance and everything in between, it can open up so many opportunities. This is an industry that can give you responsibility from a young age and if you’re willing to work hard, you will go far no matter what your background.”