The head of Next, Lord Wolfson of Aspley Guise, has raised concerns about a significant decline in entry-level job opportunities for young people, attributing the trend to recent government policies. Speaking amid rising youth unemployment, Lord Wolfson highlighted that the number of applicants for each shop position at Next has nearly doubled in two years, from 10 to 19. This increase underscores what he describes as a “crisis in youth employment,” with official figures showing the unemployment rate for 16 to 24-year-olds reaching 16.2 percent, a 12-year high.

Lord Wolfson pointed to the £25 billion rise in employers’ National Insurance contributions, introduced by Chancellor Rachel Reeves in the 2024 Budget, and wage increases above inflation as key factors contributing to the reduction of entry-level positions. He claimed that these cost pressures have forced his company to reduce its shop-floor staffing levels. Additionally, he warned that forthcoming reforms under the Employment Rights Act, which will ban zero-hours contracts and require employers to guarantee minimum weekly hours, will further complicate hiring for retailers.

Retailers argue that the new legislation, championed by former Deputy Prime Minister Angela Rayner, could restrict their ability to offer flexible hours during peak periods, such as the Christmas season. They assert that the obligation to provide consistent minimum hours year-round may reduce job availability, particularly for young and part-time workers.

However, supporters of the Employment Rights Act contend that the reforms are necessary to protect workers from insecure and irregular schedules. The Act, described as the most significant overhaul of employment rights in decades, also enacts “day-one” employee rights and shortens the qualifying period for unlawful dismissal from two years to six months. Alice Martin, head of research at The Work Foundation at Lancaster University, characterized the changes as “long overdue,” highlighting that one in five UK workers currently faces severely insecure employment without predictable pay or protections.

Responding to Lord Wolfson’s criticisms, a spokesperson for the Department for Business emphasized the government’s commitment to ensuring job security and making work financially rewarding for employees. The spokesperson also noted Lord Wolfson’s substantial personal earnings, suggesting he should appreciate the importance of such measures.

Critics of the government’s approach argue that while the increased employer costs and tighter employment regulations aim to enhance worker protections, they may inadvertently reduce job opportunities for young people, particularly in entry-level positions. Some warn that the new rules could end the tradition of holiday and part-time jobs that provide young workers with valuable skills and experience.

As the Employment Rights Act phases in over this year, the debate continues over its impact on youth unemployment and the balance between job security and employment flexibility in the retail sector.