The UK’s biggest private employer is shedding jobs
Key Points
- UK retail jobs fell to 2.76 million in March 2026
- Four-quarter average of 2.79 million is the lowest on record
- Down 66,000 year-on-year and 398,000 on a decade ago
- Part-time roles down 235,000 over ten years; full-time down 163,000
- BRC cites £6.5bn in added employment costs over 14 months
UK retail employment has fallen to its lowest level on record, new figures show. There were 2.76 million retail jobs in March 2026, according to the latest Office for National Statistics data.
On a four-quarter average, which smooths out seasonal variation in hiring, employment stood at 2.79 million across the first quarter of 2026. The British Retail Consortium said this is the lowest figure on record.
That four-quarter average was 66,000 lower than a year earlier and 398,000 lower than in the first quarter of 2016. Of the Q1 2026 total, 1.27 million roles were full-time and 1.52 million were part-time. Full-time jobs were down 163,000 on a decade ago, while part-time jobs fell by 235,000 over the same period.
Rising costs across the sector
The decline comes as retailers face an additional £6.5 billion in employment costs over a 14-month period, which the British Retail Consortium attributes to increases in employer National Insurance Contributions and the National Living Wage.
Retail leaders have also said that aspects of the Employment Rights Act, if implemented without sufficient flexibility, could make it harder for businesses to offer the entry-level and flexible roles that many workers rely on. Retail is the UK’s largest private sector employer.
In a recent letter coordinated by the British Retail Consortium, more than 80 retail chief executives warned that rising employment costs and additional regulatory burdens risk closing off opportunities for young people and reducing the flexible roles relied upon by students, parents and carers.
BRC response
Helen Dickinson, Chief Executive of the British Retail Consortium, said the impact of rising employment costs cannot be ignored.
“Retail has long been the UK’s main job creator, but that is becoming harder to sustain. Employment has fallen to a record low as costs continue to rise. At a time when the economy needs growth, retailers and households need policies that support job creation, not puts them at risk.”
Dickinson said the pressures are greater for young people, pointing to projections that the number of young people not in education, employment or training will reach 1.25 million over the next five years.
She said retail and its supply chain account for almost a quarter of all youth employment.
“Flexible, entry-level roles that help people gain skills, confidence and experience are a vital route into work, but rising employment costs and additional regulatory burdens are choking off opportunities at a time when they’re needed most,” she said.
Dickinson added that if the government is serious about tackling youth unemployment, it must bring down the cost of employing young people and ensure employment reforms support entry-level recruitment and progression.
She said retailers stand ready to work with the government to help more young people take their first step on the career ladder.
