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Surge in job applicants signals youth unemployment crisis
Lord Simon Wolfson, chief executive of high street retailer Next, has raised alarms over a steep drop in entry-level employment opportunities across the UK. Speaking to the BBC, Wolfson revealed that the number of applicants for retail positions at Next has nearly doubled in just two years, rising from 10 to 19 per vacancy.
"This dramatic increase in applicants for shop roles highlights the scale of the youth unemployment crisis," he said. Latest official figures show the unemployment rate for 16 to 24-year-olds stands at 16.2%, the highest since late 2014 and more than three times the national average of 5%.
Retailers blame rising costs for hiring challenges
Wolfson attributed the decline in job creation to a combination of higher employment taxes and minimum wage increases. Next's annual wage bill has risen by £70 million due to government policies, he said, forcing the retailer to reduce staff numbers in stores while expanding its online operations.
The company has also turned to automation, introducing self-service lockers for returns to cut labour costs. Despite these measures, Next reported a 6.2% rise in first-quarter sales and upgraded its full-year profit forecast to £1.2 billion earlier this month.
"If you don't run a business for profit, you don't stay in business. Over the last 25 years, 70-80% of retailers from that era have disappeared," Wolfson said, defending the company's financial performance.
Lord Simon Wolfson, Next CEO
Government defends wage policies amid criticism
A Treasury spokesperson countered Wolfson's claims, arguing that raising the minimum wage had boosted pay for over 200,000 young workers. The government also noted that employer National Insurance contributions are lower for workers under 21.
"Cutting wages for the lowest-paid during economic uncertainty is not the solution," the spokesperson said, pointing to a £2.5 billion youth employment support package aimed at creating a million opportunities nationwide.
A Department for Business and Trade representative added that recent Budget measures had stabilised the economy and supported families and businesses. They also took a swipe at Wolfson, who earned over £7 million last year, stating: "He will understand how critical our policies are for the financial security of working people."
Employment law reforms spark debate
Wolfson also criticised upcoming changes to employment law, particularly a requirement for employers to offer guaranteed hours to casual workers. While he acknowledged concerns over zero-hours contracts, he warned the reforms would make it harder to offer flexible shifts during peak periods, such as the Christmas season.
"You can't afford to have the same number of staff in February as you do around Christmas. This will hurt workers who want extra hours, like students during holidays, and harm customer service," he said.
Lord Simon Wolfson
The Trades Union Congress (TUC) dismissed these concerns, calling the policy "hugely popular" and stating that guaranteed hours would be based on a reference period to balance demand fluctuations. "This will provide security for workers who currently lack stability," a TUC spokesperson said.
Economic growth seen as key to job market recovery
Rather than focusing solely on youth unemployment, Wolfson urged the government to prioritise broader economic reforms. He called for changes to planning laws, energy policy, and transport infrastructure to stimulate growth, arguing that high land costs-where agricultural land in the south-east jumps from £15,000 to £1.5 million per acre with planning permission-were stifling development.
"If the government takes its foot off the brakes, we could see a much faster-growing economy," he said.
Lord Simon Wolfson
Retailers and hospitality businesses, which often provide first jobs for young people, have warned that sluggish economic growth and rising operational costs are discouraging hiring, particularly for part-time and entry-level roles.
