80 retail execs back call for government to tackle youth unemployment

Executives from leading UK retailers have called on the government to address policies believed to be making it harder to hire young people. Over 80 business leaders have signed a letter co-ordinated by the British Retail Consortium (BRC) warning that taxes and red tape are pushing up the cost of entry-level jobs.

Chief executive officers from All Saints, Ann Summers, Dune Group, JD Sports, Dr Martens, Marks & Spencer, Matalan Retail, Monsoon Accessorize, Reiss, TFG Brands, Seasalt, The Very Group, and Mamas & Papas are among those to have signed.

Karen O’Rourke, managing director of H&M UKIE and another signatory, said: “Too many young people are still being locked out of opportunities, and at H&M we see firsthand how important it is to create clear, inclusive pathways into work.

"Retail has a unique role to play in opening those doors, which is why we fully support the BRC’s call for stronger partnership with government to remove barriers and expand access to meaningful jobs. By working together, we can help more young people build the skills and confidence needed for long-term, sustainable careers.”

Concerns over youth unemployment rates were emphasised in an interim report by Alan Milburn, which suggested that 1.25 million under-25s could become unemployed in the next five years. Rising business costs, including an increase in National Living Wage, and changes to employment rights are also said to be impacting hiring methods.

The retail sector, which has historically remained entry-level, has particularly been hit hard by sweeping cuts. According to the BRC, around 400,000 jobs have been lost over the past decade, reducing entry-level opportunities for young people.

In response, business leaders are calling on the government to strengthen support by establishing a joint government-retail taskforce to enhance employment routes. The letter also requests for a reduction in employment costs and the implementation of reforms that support entry-level recruitment.

Helen Dickinson, chief executive of the BRC, added: “Retail and its supply chain account for almost a quarter of all youth employment, making our industry uniquely placed to support young people through flexible, entry-level roles and clear routes for progression. But this first step on the ladder is cracking under the weight of government-imposed costs and regulations.”

Dickinson continued: “Youth unemployment is a challenge that government and business must tackle together. If government wants more young people in work, it must create the conditions that allow businesses to hire, train and develop the next generation.

“Retailers stand ready to work in partnership with government through a joint retail-government taskforce to strengthen routes into employment, remove barriers to hiring and help more young people take that crucial first step into the world of work.”