Budget impact could see one in ten part-time retail jobs at risk

The impact of the Government’s 2024 Autumn Budget, along with upcoming regulatory changes, could put one in ten part-time retail jobs, up to 160,000 roles, at risk over the next three years.

That’s according to the British Retail Consortium, which says that rising employer National Insurance Contributions (NICs) and National Living Wage (NLW) will add £5 billion to retailers’ labour costs in 2025 alone, putting pressure on the industry to cut back on employment.

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. That will make it significantly more expensive to hire part-time workers than previously (from 6 April 2025, when the changes come in to effect).

That could be compounded by some of the proposed changes under the Employment Rights Bill, which could force firms to reduce the number of local, flexible jobs, impacting part-time workers the most.

There are currently over 1.5 million part-time jobs in retail, a little over half of all retail jobs. That includes students making extra money during their studies, parents working around childcare, and seasonal workers providing support during the peak trading periods.

Almost one fifth of retail workers are under the age of 25, making the industry a first step on the career ladder for hundreds of thousands of young people. Many could now miss out on such opportunities.

Helen Dickinson, CEO at the British Retail Consortium, said:"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 £4 billion 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.

"Retailers face a mountain of costs from the Budget and while they continue to absorb costs where they can, higher prices and job losses are inevitable. If the government can find ways of mitigating the £7bn of costs facing the industry this year, as well as ensuring a pragmatic approach to the Employment Rights Bill that focuses on tackling unscrupulous employers, protecting employees while supporting employment, then many jobs would be saved."

Retail remains a vital source of employment across the UK. It is the largest private sector employer, with the industry and its supply chains accounting for over a third of local jobs in 20% of parliamentary constituencies.