Some of the UK’s largest retailers are preparing to urge prime minister Keir Starmer to take action on youth unemployment, as industry leaders warn that rising employment costs risk shutting young people out of work.
The British Retail Consortium has drafted a letter to Downing Street calling for a joint retail and government taskforce to address the youth jobs crisis, according to Sky News.
The letter is expected to be backed by bosses from major retailers including Marks & Spencer, Sainsbury’s, Tesco, Asda, Morrisons and Primark.
The BRC is understood to warn that the “ladder of opportunity for young people is wobbling”, arguing that retail has long acted as a vital entry point into the labour market for those with limited qualifications or experience.
It will call on ministers to simplify and improve regional and national support for youth employment, while also reducing the costs associated with taking on younger workers.
The intervention comes amid growing concern over the number of young people not in education, employment or training, which recently passed one million for the first time in more than a decade.
Former Labour cabinet minister Alan Milburn warned last month that the UK is at risk of creating a “lost generation”, in the first part of a government-commissioned review into youth unemployment.
Milburn described the situation as both a moral and economic crisis, with youth unemployment estimated to be costing Britain more than £125bn a year.
Retail leaders are expected to argue that government employment and skills reforms must encourage entry-level recruitment, rather than make it harder for businesses to hire and progress young people.
The draft letter reportedly says many senior retail figures “started on the shop floor”, adding that the sector has traditionally offered young people a route into long-term careers both inside and outside the industry.
M&S this week launched a new training scheme aimed at 16 to 24-year-olds, creating 1,000 places across the UK and Ireland over the next 18 months.
The six-month programme is designed to help young people build workplace skills and confidence, with no degree required and the potential to progress into store management roles.
M&S chief executive Stuart Machin, who began his own retail career pushing trolleys at 16, recently said the UK was “losing out on limitless potential” by failing to help young people into work.
The government has already announced plans to create 300,000 new work experience and training placements over the next three years across sectors including construction, health and social care, and hospitality.
The scheme forms part of a £2.5bn youth employment support package and includes hiring bonuses for employers and subsidised jobs for those out of work for longer periods.
However, retail chiefs are increasingly concerned that rising labour costs and pressure on entry-level hiring could deepen the problem.
Next chief executive Lord Wolfson warned last month of a “dramatic fall” in the number of entry-level jobs in the UK, saying the retailer was now receiving twice as many applicants for shop roles as it was two years ago.
He said young people were among the first to suffer when fewer jobs were available, as those with the least experience were often hit hardest by a weaker labour market.
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