The UK retail sector has witnessed a major reduction in jobs over the past five years, a trend underscored by recent ONS data.
- The employment figures reveal a net loss of 225,000 retail jobs during this period.
- Current trends indicate a further decline of 40,000 jobs when compared to last year.
- Rising costs and industry transformations, such as automation, are influencing these job losses.
- Retailers are increasingly investing in technology to adapt to a changing landscape.
The UK retail sector has suffered significant job reductions, with 225,000 roles eliminated over the past five years, according to the Office for National Statistics (ONS). The sector continues to be the largest private employer, despite these cuts. BRC CEO Helen Dickinson emphasized the industry’s ongoing transformation, stating, “Despite a further fall in the number of retail jobs, the industry remains the largest private sector employer providing approximately 2.9m jobs in the UK, with another 2.7m in the supply chain.”
The latest data highlights a decrease of 40,000 jobs compared to the previous year. This reduction underscores the ongoing employment challenges within the sector, as businesses navigate economic pressures and operational changes.
Key factors contributing to these job losses include increased automation and rising costs. As retail companies invest more in technology and outsource logistics and warehousing, traditional job roles are diminishing. “The current fall is partially explained by ongoing transformation in the industry, from increased investment in automation and higher productivity, to a shift to outsourcing of warehousing and logistics that are not all captured by the ONS retail figures,” said Dickinson.
Wage growth and new budget regulations are amplifying the financial burden on retailers. With a notable pay increase of 8.5% in 2024, significantly above the national average, and further rising costs from changes in the National Living Wage and employer NI contributions, retailers face substantial financial pressures. Dickinson warned that this might accelerate job reductions, particularly affecting part-time workers.
Retail leaders are adjusting strategies, prioritizing investment in automation and productivity improvements. Dickinson noted, “It is inevitable the Budget will also put pressure on jobs and hours in the coming year, potentially affecting communities all over the UK that rely on retail as a vital provider of entry level, local jobs.” However, some retailers are criticized for employing young seasonal workers under precarious terms, as noted in a report by The Observer, which identified several prominent brands hiring via gig platforms.
The evolution of the retail sector, driven by economic and technological factors, continues to reshape its employment landscape.
