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Retail employs twice as many young people as any other sector, M&S finds

Nearly one in four young people started their careers in retail, contributing £7.4bn in GVA, or 7% of the sector’s total economic impact for 2024.

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Retail helped double the number of young people into work compared to any other sector this year, according to research from Marks & Spencer (M&S).

Nearly one in four young people started their careers in retail, contributing £7.4bn in gross value added (GVA), or 7% of the sector’s total economic impact for 2024.

The research, carried out by the Centre for Economics and Business Research, showed 948,000 young people were not in employment, education, or training as of December 2024, the highest level in 10 years. 

There were 650,000 fewer 16 to 24-year-olds in employment compared to 30 years ago. 

Long-term sickness, particularly mental health challenges, led to a 55% increase in economic inactivity for this age group since 2019.

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M&S said its Marks & Start programme, run in partnership with the King’s Trust, had supported over 12,000 young people in 20 years. 

The programme reached a five-year high for completion rate (91%) and for offers of permanent paid work (88%) this year. 

The scheme offers a four-week work experience placement, aiming to build employability skills and confidence for those who face barriers to work.

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Research showed that mental health was now one of the biggest barriers, with 28% of young people saying it had stopped them applying for jobs. 

The retailer worked with YoungMinds to review Marks & Start training, aiming to give better support to young people on the programme. 

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The partnership with YoungMinds raised over £4.4m in two years, supporting more than 6 million young people.

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M&S called on the Government to work more closely with businesses to get more young people into jobs. 

The company said employer national insurance contributions (NICs) relief for those hiring the long-term unemployed or young people struggling to find work could unlock further opportunities. 

M&S also called for reform of the Apprenticeship Levy.

Stuart Machin, CEO at M&S, said: “Retail is a powerful engine of social mobility. At a time when so many young people are struggling to get their foot on the career ladder, this industry can give them that first crucial opportunity – particularly those facing the biggest barriers. 

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“As one of the UK’s biggest retail employers, we have already supported more than 12,000 young people through Marks & Start and we’re committed to doing our bit to get more young people into work. 

“But we can’t do it alone – businesses need more support from the Government to unlock more opportunities for young people.”

Machin added: “Retail is a dynamic, fast-moving industry where no two days are the same. From working in stores or supply chain to food, fashion or finance and everything in between, it can open up so many opportunities. 

“This is an industry that can give you responsibility from a young age and if you’re willing to work hard, you will go far no matter what your background.”

Jonathan Townsend, CEO at the King’s Trust, said: “Young people continue to face significant challenges to their employment prospects but there are so many young people who are ready to work and just need additional support to make that happen. 

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“We rely on partners like M&S who invest in young people and create accessible routes to employment, helping us to achieve our mission of building the confidence and skills of young people who need us most.

“M&S has been a driving force behind our employability initiatives and we are so proud of our long-standing partnership, celebrating 20 years together to support 12,000 young people.”

Townsend added: “With their pioneering approach and embedding our work across their organisation, we are able to remove employability barriers for thousands of young people helping to transform their futures.”

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