More than 80 retail leaders, including bosses from Britain's biggest supermarket chains, have issued an urgent warning to Prime Minister Sir Keir Starmer over rising youth unemployment. The letter, sent to Downing Street by the British Retail Consortium (BRC), warns that increasing employment costs and new regulations are making it harder for young people to enter the workforce.
Supermarkets Lead the Warning
The chief executives of Tesco, Sainsbury's, Morrisons, and Asda are among the signatories. They argue that retail remains a critical entry point for young workers, offering first jobs and career opportunities. However, they describe the 'ladder of opportunity' for young workers as 'wobbling' under pressure.
'Retail has always been where any young person can start with few qualifications, limited experience and build a lasting career,' the letter states. 'Many of us started on the shop floor, and it remains central to how our businesses grow and compete.'
Youth Unemployment at Decade High
The intervention comes as youth unemployment reaches its highest level in over a decade, with job vacancies falling sharply across the UK economy. Supermarkets are among the largest private-sector employers, providing thousands of entry-level roles annually in stores, distribution centres, and management training programmes.
Industry leaders say these opportunities are becoming harder to create as employment costs rise. The BRC notes it is now 'more expensive than ever' to recruit young workers and warns that changes under the Employment Rights Act complicate workforce management.
Call for Government Action
Helen Dickinson, chief executive of the BRC, said ministers must avoid policies that increase the cost of creating jobs. 'The message from retail is clear: if government is serious about tackling youth unemployment, it cannot keep making it more expensive to create jobs,' she said.
Retailers have also criticised Labour's increase in employer National Insurance contributions and proposed reforms to age-based wage structures, arguing these measures could discourage entry-level hiring and limit career progression.
Government Response
A government spokesperson said: 'We are already working in partnership with businesses to tackle youth unemployment and create 50,000 more opportunities for young people as part of our £2.5bn youth employment support package. From this month, we’re rolling out £3,000 payments, covering wages for six months for those out of work long-term, and cutting hiring costs for under-21s and apprentices.'
The letter follows a report by former Health Secretary Alan Milburn, warning that up to 1.25 million 16- to 24-year-olds could be out of education, employment, or training by the end of the decade.
