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The British Retail Consortium (BRC) has cautioned that flexible, entry-level roles for young people may shrink if reforms meant to boost job security are poorly executed.
The Employment Rights Act, which was awarded Royal Assent last December, targets enhancing job security and living standards, but the trade association said specific measures such as instating guaranteed hours could increase costs and add red tape for employers.
The cost of employing a full-time entry-level staff member has risen by 10% since last April, more than 13% for a part-time worker.
BRC survey data suggests 52% of leading retail CFOs plan to cut hours or overtime in response to these rising charges, while 32% expect to freeze recruitment.
If the act’s roll out further heightens expenses or complexity, the group said businesses will inevitably rethink hiring plans and slash entry-level and short-hour roles first.
As secondary legislation goes out for consultation, the consortium has urged the government to work closely with the sector to ensure implementation fights “genuine” exploitation without reducing flexible work opportunities.
It added that this includes acknowledging that seasonal peak hours cannot be offered year-round and taking a practical approach to trade union access that reflects the actual workforce.
New BRC figures indicate that flexible work is important to 70% of Gen Z workers (18-29), growing to 73% within those with part-time jobs.
The group said flexible retail roles should not be mistaken for “a loophole or poor practice”, as they are thoughtfully selected by people balancing study and other commitments, caring responsibilities or looking for early work experience.
Its warning comes as the Office for Budget Responsibility predicts youth unemployment will hit 5.3% this year and As Alan Milburn, Chair of the Independent Review into Youth and Work, calls youth unemployment an “existential crisis”.
With 16.1% of 16-24 year-olds already out of work, the BRC said “entry routes into work matter more than ever, particularly for young people”.
About 780,000 retail jobs in the UK are held by 16-25-year-olds, comprising 28% of the sector’s workforce and making retail the country’s primary pathway to 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, 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.”
