Ryan FowlerThe Office for National Statistics (ONS) has reported that there were 2.81 million jobs in the retail sector in September 2024, marking a traditionally low point before the holiday season boosts employment. The data, averaged over four quarters, shows a decline of 40,000 jobs compared to the previous year and a significant drop of 225,000 jobs from five years ago.
Helen Dickinson, chief executive at the British Retail Consortium, commented on the figures, saying: “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 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.”
Dickinson also highlighted the rising costs associated with employment, stating: “Meanwhile, costs of hiring have risen significantly in recent years. Pay growth in the industry was well above the national average at 8.5% in 2024, and up over 25% since 2021. The October Budget increases the National Living Wage by a further 6.7%, adding over £2.7bn to retailer wage bills from April 2025, while changes to rate and threshold for employer NI contributions will cost the industry over £2.3bn. This could hasten the reduction in retail jobs and particularly the recruitment of part-time roles, which have been falling in recent years.”
She further noted the industry’s adaptation to these changes, adding: “Retailers are responding to the changing business landscape, with most saying they will further increase investment in automation and improve worker productivity. 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.”
