Retailers in UK plan to cut staff hours and jobs amid rising employment costs

"The retail sector has shed 74,000 jobs in the past year partly owing to new technology, from AI marketing and stock management tools to automated tills. Retailers said they planned to implement more technology and other productivity tactics to reduce labour requirements after employment costs rose by 5bn in 2025, according to the BRC, as a result of increases in employer national insurance contributions and a higher legal minimum wage."

"The BRC survey found 69% of retail finance bosses were pessimistic or very pessimistic about the outlook, up from 56% in July last year. Only 14% were optimistic although that was up from 11% in July. Helen Dickinson, the chief executive of the BRC, said: We all want more high-quality, well-paid jobs. But retail has already lost 250,000 roles in the past five years and youth unemployment is climbing fast."

61% of retail finance bosses plan to reduce working hours or cut overtime, while 55% expect head office cuts and 42% foresee reductions in stores, cutting entry-level roles. The sector shed 74,000 jobs in the past year and 250,000 over five years, raising youth unemployment. Employment costs rose by £5bn in 2025 after higher employer national insurance contributions and a higher minimum wage. Retailers plan more technology and productivity tactics, including AI and automated tills, to reduce labour requirements. Cut-price online competitors and weak consumer demand amid higher household bills are adding further pressure, leaving finance bosses largely pessimistic.

Read at www.theguardian.com