Part-time retail jobs ‘at risk’ due to the impact from the Budget and regulatory changes, BRC warns

Part-time jobs make up around 1.5 million roles in retail, equating to over half of all retail jobs. Many of these roles are taken by students, parents working around childcare, and seasonal workers helping out during the peak trading periods.

The BRC said one in 10 of these part-time roles, up to 160,000, could be at risk of being axed in the next three years due to rising costs of employment stemming from the Budget, as employer national insurance contributions (NIC) and national living wage will add £5bn to retailers’ labour costs this year.

Part-time roles are likely to be impacted by the changes to employer NIC thresholds, as retailers will be taxed for every employee earning over £5,000 – making it more expensive to hire part-time staff.

Some of the proposed changes under the employment rights bill could also force retailers to cut down the number of local, flexible jobs.

The BRC is calling on part-time jobs to be protected as it launches a new manifesto for retail, outlining a path for the retail industry to kickstart investment in growth, people, and sustainability across the UK.

British Retail Consortium chief executive Helen Dickinson said: “Retail is a key source of employment right across the economy. The industry and its supply chains account for a third of jobs in one-fifth of UK constituencies and retail plays a vital role in upskilling the workforce and boosting productivity growth, currently spending £4bn a year on training.

“Retail has long offered the first rung of the career ladder to hundreds of thousands of young people, playing a vital role in communities up and down the country.

“However, between rising employer national insurance contributions, higher national living wage costs, and incoming employment regulations, the government may be kicking away the ladder for the next generation. One in 10 part-time retail roles are now at risk of being lost.

“Retailers face a mountain of costs from the Budget and while they continue to absorb costs where they can, higher prices and job losses are inevitable.

“If the government can find ways of mitigating the £7bn of costs facing the industry this year, as well as ensuring a pragmatic approach to the Employment Rights Bill that focuses on tackling unscrupulous employers, protecting employees while supporting employment, then many jobs would be saved.”