One in 10 part-time retail jobs at risk – BRC

Some 7000 part-time retail jobs in Northern Ireland are under threat over the next three years, according to the Northern Ireland Retail Consortium.

The revelation comes following new analysis by the British Retail Consortium of the impact on the UK retail industry from upcoming changes to employment policy, including the hike in employers’ National Insurance Contributions unveiled in the Autumn Budget.

Presently there are over 1.5 million part-time jobs in retail, just over half of all retail jobs, remaining a vital source of employment right across the UK. The BRC has issued the stark warning that up to 160,000 of these jobs could be at risk of being lost over the next three years.

The rising costs of employment, driven by measures announced in the Autumn Budget, rising employer National Insurance Contributions and National Living Wage rises will add £5 billion to retailers’ labour costs this year alone, putting pressure on the industry to cut back on employment.

“The UK Budget’s swingeing increase in employers’ National Insurance Contributions will add £100 million a year to retailers’ outgoings in Northern Ireland,” said Director of the NIRC, Neil Johnston.

“Given retail’s paper-thin profit margins, this is the equivalent of having to sell more than £1 billion of goods each year to offset the cost and maintain margins.

“This risks accelerating a downward spiral in retail jobs. Recent figures have shown that 7000 retail jobs have been lost over the past five years – these new additional costs will make a bad situation worse.

‘Retailers face a mountain of costs from the Budget and higher prices and job losses are inevitable’

“These expensive statutory costs will tighten the fiscal screws on the industry in 2025 and cannot simply be absorbed. This will have consequences for staffing levels including part-time and entry level roles, for commercial investment, and for prices charged to customers.”

Almost one fifth of retail staff are aged below 25, making the industry a vital first step on the career ladder for thousands of young people. The call to protect part-time jobs comes as the BRC launches its 2025 Manifesto for Retail which outlines a path for the retail industry to help kickstart investment in growth, people and sustainability across the UK.

“Retail is a key source of employment right across the economy,” said Helen Dickinson, Chief Executive of the BRC.

“The industry and its supply chains account for a third of jobs in one-fifth of the UK constituencies and retail plays a vital role in upskilling the workforce and boosting productivity growth, currently spending £4 billion a year on training.

“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 £7 billion 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.”