Retail jobs hit record low as firms cut staff over NMW changes
Chris Robson, Employment Tax Partner and Fair Pay Lead at RSM UK reacts to today’s labour data: “It’s not surprising that employment within the retail sector in March hit its lowest level since records began, as more than a quarter of retailers (27%) are looking to mitigate the impact of April’s national minimum wage changes by reducing the size of their workforce*.
“As a large employer of younger workers this will acutely hit youth employment, particularly when they are hiring, they are reducing entry level roles with almost half (48%) looking to recruit experienced hires instead. The pressure on staff costs is already having unintended consequences, and this could get worse with future plans to bring in one standardised NMW rate - becoming a further disincentive for recruiters to hire younger inexperienced staff.”
Jacqui Baker, Partner and Head of Retail at RSM UK, added: “This indicates a worrying trend within retail as around a quarter of young people start their careers in the retail sector – demonstrating the acute impact a NMW changes could have on the job prospects for young people. If this weakness in the job market and low growth continues then this gateway into the workforce for young people could be hampered further - exacerbating the youth unemployment risk.”