Next Boss Warns of Dramatic Fall in Entry-Level Jobs

BBC Business reported Sunday that the head of British retailer Next has sounded a sharp alarm over entry-level jobs in the UK. Next chief executive Lord Wolfson said the number of applicants per shop vacancy at the company has roughly doubled over two years. That surge, he argued, reflects a deepening crisis in youth employment across the country.

Applicant Numbers Tell a Stark Story

Two years ago, Next typically attracted around ten candidates per retail position. That figure has now climbed to nineteen. Lord Wolfson told BBC Business the doubling of applicants for entry-level jobs signals how severe the youth unemployment situation has become. The unemployment rate for 16-to-24-year-olds currently sits at 16.2%. That is the highest level since 2014 and more than three times the broader national rate of 5%.

Costs Are Reshaping Retail Hiring

Lord Wolfson pointed to a combination of factors he says are squeezing entry-level jobs. Higher employer National Insurance contributions and mandatory minimum wage increases have pushed Next’s annual wage bill up by roughly £70m. The retailer has responded by reducing in-store headcount and accelerating automation. Self-scanning return lockers, for instance, are replacing staff at collection points. Lord Wolfson also warned that incoming rules requiring employers to offer guaranteed hours to casual workers will make flexible staffing harder to manage.

Background: UK Employment Law Under Pressure

The government’s Employment Rights Act, passed earlier this year, aims to curtail zero-hours contracts. Ministers describe such arrangements as exploitative and argue the legislation delivers a baseline of security for workers. A Treasury spokesperson said raising the minimum wage had boosted pay for more than 200,000 young people. The spokesperson also noted that employer National Insurance rates are lower for workers under 21. The government additionally cited a £2.5bn youth employment support package intended to create one million opportunities nationally.

Next Remains Profitable But Cautious

Despite the warnings, Next continues to perform. The retailer lifted its full-year profit guidance to £1.2bn earlier this month, with first-quarter sales rising 6.2%. Lord Wolfson pushed back on criticism that profits come at workers’ expense, noting the company’s shareholders are largely everyday savers collecting modest annual dividends. He argued that without sustained profitability, retailers cannot survive. He pointed out that roughly 70-80% of high street names from 25 years ago no longer exist. Growth, he said, remains the only genuine fix for the jobs market.

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