UK Retail Jobs Fall to Record 2.79 Million as £6.5 Billion Cost Surge Squeezes Hiring
Updated
Updated · TheIndustry.fashion · Jun 18
UK Retail Jobs Fall to Record 2.79 Million as £6.5 Billion Cost Surge Squeezes Hiring
3 articles · Updated · TheIndustry.fashion · Jun 18
Summary
UK retail employment fell to a record-low four-quarter average of 2.79 million in Q1 2026, down 66,000 from a year earlier and 398,000 from Q1 2016.
£6.5 billion in added employment costs over 14 months — driven by higher employer National Insurance Contributions and the National Living Wage — has intensified pressure on hiring, the British Retail Consortium said.
Part-time roles have borne the brunt: Q1 2026 retail jobs included 1.52 million part-time and 1.27 million full-time positions, with part-time employment down 235,000 over a decade versus a 163,000 drop in full-time roles.
More than 80 retail CEOs have warned that planned Employment Rights Act changes, if applied without flexibility, could further reduce entry-level and part-time jobs that students, parents and carers rely on.
The decline matters beyond retail because the sector and its supply chain account for nearly a quarter of youth employment, as industry leaders warn fewer shop-floor openings could deepen UK youth unemployment.