The retail industry has cut 225,000 jobs over five years, according to the latest figures from the Office for National Statistics (ONS).
On a four-quarter average, there were 40,000 fewer jobs than last year, and 225,000 fewer than five years ago, the government department found.
BRC CEO Helen Dickinson explained: “Despite a further fall in the number of retail jobs, the industry remains the largest private sector employer providing approximately 2.9m jobs in the UK, with another 2.7m in the supply chain.
“The current fall is partially explained by ongoing transformation in the industry, from increased investment in automation and higher productivity, to a shift to outsourcing of warehousing and logistics that are not all captured by the ONS retail figures.”
She continued: “Meanwhile, costs of hiring have risen significantly in recent years. Pay growth in the industry was well above the national average at 8.5% in 2024, and up over 25% since 2021.
“The October Budget increases the National Living Wage by a further 6.7%, adding over £2.7bn to retailer wage bills from April 2025, while changes to rate and threshold for employer NI contributions will cost the industry over £2.3bn.
“This will could hasten the reduction in retail jobs and particularly the recruitment of part-time roles, which have been falling in recent years.”
Related Story
The trade association boss said retailers were “responding to the changing business landscape,” with the majority saying they would “further increase investment in automation and improve worker productivity”.
“It is inevitable the Budget will also put pressure on jobs and hours in the coming year, potentially affecting communities all over the UK that rely on retail as a vital provider of entry level, local jobs,” she added.
It comes as various retailers have come under fire for hiring young Christmas staff without employment rights.
Retail giants including Lush, Urban Outfitters, Uniqlo and Gymshark were found to be hiring “freelance” shop assistants via gig apps to work in stores over the festive period, according to The Observer.
Click here to sign up to Retail Gazette‘s free daily email newsletter
