“Despite a further decline in retail jobs, the industry continues to be the largest private sector employer, offering approximately 2.9 million jobs in the UK, along with an additional 2.7 million in the supply chain. The fall has been partly attributed to ongoing industry transformation, including increased investment in automation and productivity improvements, as well as a shift towards outsourcing warehousing and logistics, which are not fully reflected in ONS retail figures,” Helen Dickinson, chief executive at the British Retail Consortium (BRC), said in a press statement.
The UK retail sector had 2.81 million jobs in September 2024, down 40,000 from last year and 225,000 from five years ago, per ONS.
Despite being the largest private employer, the sector faces challenges from automation, outsourcing, and rising costs.
BRC stated pay growth of 8.5 per cent in 2024, with Budget wage and NI changes adding £5 billion (~$6.25 billion) in costs, risking further job cuts.
“Meanwhile, costs of hiring have risen significantly in recent years. Pay growth in the industry was well above the national average at 8.5 per cent in 2024, and up over 25 per cent since 2021. The October Budget increases the National Living Wage by a further 6.7 per cent, adding over £2.7 billion (~$3.43 billion) to retailer wage bills from April 2025, while changes to rate and threshold for employer National Insurance (NI) contributions will cost the industry over £2.3 billion (~$2.875 billion),” Dickinson added. “This will could hasten the reduction in retail jobs and particularly the recruitment of part-time roles, which have been falling in recent years.”
Retailers are adapting to the evolving business landscape, with the majority indicating plans to further invest in automation and enhance worker productivity. However, the upcoming Budget is expected to place additional pressure on jobs and working hours, potentially impacting communities across the UK that depend on retail as a key provider of entry-level and local employment opportunities, she further said.
Fibre2Fashion News Desk (SG)