UK retail has lost nearly 400,000 jobs in a decade – and experts warn a ‘jobless generation’ is coming
The UK retail sector has shed nearly 400,000 jobs over the past decade, and the country now faces a “jobless generation” as entry-level opportunities for young workers disappear, warns the British Retail Consortium (BRC).
The figures, drawn from the latest Office for National Statistics (ONS) data, show that retail employment averaged 2.81 million jobs in 2025 – the lowest level on record.
This is 383,000 fewer than in 2015, with the four-quarter average smoothing out seasonal fluctuations in hiring. In December 2025 specifically, the sector supported 2.86 million jobs, including 1.28 million full-time positions and 1.52 million part-time roles.
Full-time jobs have declined by 140,000 over the decade, while part-time positions have fallen by 242,000. The drop has been particularly stark in recent years as 2025 alone saw 68,000 fewer jobs than in 2024.
“People everywhere are struggling to find jobs, youth employment is falling faster still, and the UK faces the prospect of a jobless generation,” said Helen Dickinson, Chief Executive of the BRC.
“The loss of almost 400,000 retail jobs over the past decade is the loss of hundreds of thousands of opportunities for young people to start earning for themselves, and for older people to return to the workforce. One in five people had their first job in retail, yet this vital step on the career ladder is cracking under the high costs of employment.”
The primary driver behind the decline is escalating employment costs, the BRC said.
In 2025, the cost of hiring a full-time entry-level worker rose by around 10%, while part-time roles increased by more than 13%. These pressures stem from factors such as rises in employer National Insurance contributions, increases in the National Living Wage, and broader economic challenges that have prompted retailers to freeze hiring, reduce hours, or turn to automation.
The BRC also expressed concern over the implementation of the Employment Rights Act, warning that poorly designed rules around guaranteed hours could make part-time and flexible work more difficult and expensive to offer.
Such changes, the organisation argues, risk discouraging employers from creating the very entry-level and flexible roles that young workers, students, parents, and carers depend on.
“As the government consults on the Act, the priority must be clear: protect workers and protect job creation,” she said. “The goal should be to tackle bad practice without making recruitment more complex, risky or expensive, especially at a time when the country urgently needs more routes into work,” Dickinson said.
High streets and shopping centers have been hit particularly hard, with separate ONS data showing retail employment on central high streets down by almost a fifth since 2015, and in shopping centers by nearly a third.
