The British Retail Consortium (BRC) has warned that up to 160,000 part-time jobs in the sector are at risk of being lost over the next three years as a result of higher employer taxes and regulatory changes.
There are currently over 1.5 million part-time jobs in retail, a little over half of all retail jobs. This includes students making extra money during their studies, parents working around childcare, and seasonal workers.
The trade body estimates that one in ten of these jobs could be at risk as a result of the rising costs of employment, driven by measures announced at the government’s last Budget. Rises in employer National Insurance Contributions (NICs) and the National Living Wage are expected to add £5bn to retailers’ labour costs in 2025 alone, putting pressure on the industry to cut back on staff.
The BRC noted that part-time roles are particularly susceptible to the upcoming changes in the employer NICs thresholds, with retailers to be taxed for any employee earning more than £5,000 – down from the current level of £9,100. This will make it more expensive to hire part-time workers than previously. These effects will be compounded by some of the proposed changes under the Employment Rights Bill, which could force firms to reduce the number of flexible jobs. This is likely to have the biggest impact on part-time workers, including seasonal and student jobs.
The call to protect part-time jobs came as the BRC launched its 2025 Manifesto for Retail, which outlines a path for the retail industry to help kickstart investment in growth, people, and sustainability across the UK.
Helen Dickinson, Chief Executive at the BRC, commented: “Retail is a key source of employment right across the economy. The industry and its supply chains account for a third of jobs in one-fifth of UK constituencies, and retail plays a vital role in upskilling the workforce and boosting productivity growth, currently spending £4bn a year on training.
“Retail has long offered the first rung of the career ladder to hundreds of thousands of young people, playing a vital role in communities up and down the country. However, between rising employer National Insurance Contributions, higher NLW costs, and incoming employment regulations, the government may be kicking away the ladder for the next generation. One in ten part-time retail roles are now at risk of being lost.”
