Next boss warns of 'dramatic' fall in entry-level jobs
Next's boss says entry-level jobs are shrinking fast in the UK as taxes, wage costs and new labour rules make hiring harder.
Intelligence analysis by GPT-5.4 Mini
Lord Wolfson says low-level hiring has fallen sharply, with more applicants chasing fewer shop jobs. He blames higher employer costs and looming labour reforms, while ministers say their policies protect pay and widen opportunity.
Next's boss says it is getting much harder for young people to find their first job. He says there are more people applying for each shop role, like too many players trying to fit onto a small number of chairs.
He thinks higher taxes for employers, higher wages, and new rules about work hours make companies less willing to hire. The government says those changes help workers and gives young people more support.
The story matters because a first job is often how people learn work skills. If fewer starter jobs exist, young people can have a harder time getting onto the career ladder.
Analysis
What Next is warning
Next chief executive Lord Wolfson says the UK has seen a "dramatic" decline in entry-level job opportunities. He told the BBC that applications for shop jobs at Next have risen from about 10 per role two years ago to 19 now, which he says reflects a wider youth employment problem.
Why hiring is getting harder
Wolfson points to several pressures: higher employer National Insurance costs, rising minimum wages, and the government's Employment Rights Act. He argues these changes make it harder to create low-paid, part-time roles, especially in retail. He also says a ban on zero-hours contracts from next year will reduce flexibility, though the government says the reforms will replace "one-sided flexibility" with more security.
The bigger economic picture
The article links the hiring squeeze to sluggish growth and broader weakness in the labour market. Official figures cited in the piece put unemployment among 16 to 24-year-olds at 16.2%, the highest since 2014, and more than three times the general unemployment rate of 5%.
Ministers reject the claim that policy is hurting workers. A Treasury spokesperson says the minimum wage increase has lifted pay for more than 200,000 young workers and points to lower employer National Insurance rates for under-21s, along with a £2.5bn youth employment package. The Business Department also defends the government's Budget and questions Wolfson's criticism.
The article also shows how bigger retailers are adjusting to labour pressure. Next says it now has fewer staff in individual shops and is using more automation, including self-scanning lockers for returns. Even so, the company remains highly profitable, with profits forecast at £1.2bn and first-quarter sales up 6.2%.
Key points
- Next says applications for shop jobs have nearly doubled per vacancy over two years.
- Lord Wolfson blames higher employer costs and upcoming labour rules for weaker hiring.
- The article says youth unemployment is 16.2%, the highest since 2014.
- Ministers argue higher pay and youth support policies help workers, not hurt them.
- Next says it is using more automation while still reporting strong profits.
