The retail industry in the UK has seen a significant reduction in jobs over the past five years. Recent figures reveal a decrease of 225,000 retail jobs, according to the Office for National Statistics (ONS).
- The British Retail Consortium (BRC) highlights that retail remains the largest private sector employer despite job cuts.
- Automation and outsourcing trends have contributed to this decline, significantly impacting warehousing and logistics roles.
- Increased hiring costs and wage growth in the retail sector are above the national average, affecting employment strategies.
- Recent budget changes are expected to add financial pressure on retailers, possibly accelerating job and hour reductions.
The retail sector in the United Kingdom has experienced a substantial decrease in employment figures, losing 225,000 jobs over a period of five years as reported by the Office for National Statistics (ONS). On average, each quarter saw 40,000 fewer jobs compared to the previous year, indicating an ongoing reduction trend.
Despite these cuts, the retail industry continues to be the largest private sector employer, providing approximately 2.9 million jobs in the UK, as noted by the British Retail Consortium (BRC). An additional 2.7 million roles are supported through the supply chain.
BRC CEO Helen Dickinson attributes part of this decline to advancements in automation and a strategic shift towards outsourcing warehousing and logistics functions, activities not entirely captured in the ONS retail statistics. This industry transformation is reshaping the employment landscape.
Furthermore, costs related to hiring have noticeably increased in recent years. Wage growth within the industry was recorded at 8.5% in 2024, surpassing the national average. Since 2021, wages in retail have risen by over 25%.
The October Budget introduces a 6.7% rise in the National Living Wage, which is projected to add over £2.7 billion to retailer wage bills from April 2025. Additionally, revisions to employer National Insurance contribution rates and thresholds are anticipated to cost the industry more than £2.3 billion, potentially expediting the reduction of retail job roles, especially in part-time positions.
Retailers are reportedly adapting to the evolving business environment, with many indicating plans to increase investment in automation further and enhance productivity. According to Helen Dickinson, these changes could lead to further constraints on jobs and working hours in the upcoming year, significantly affecting UK communities that rely on retail for local and entry-level employment opportunities.
Concurrently, large retail entities such as Urban Outfitters, Uniqlo, and Gymshark have faced scrutiny for hiring young seasonal staff without proper employment rights, utilizing gig apps for freelance shop assistants during the Christmas period.
The shifting dynamics of the retail sector indicate a continued evolution in employment practices, influenced by economic and technological advancements.
