New BRC data shows 70% of Gen Z workers aged 18 to 29 say flexibility at work is important to them, rising to 73% among those working part time.
The warning comes as the Office for Budget Responsibility forecasts unemployment will reach 5.3% this year, while youth unemployment among 16 to 24 year olds has climbed to 16.1%, its highest level in more than a decade.
Retail currently acts as one of the largest entry points into employment for young people, with around 780,000 jobs held by those aged 16 to 25, representing 28% of the sector’s workforce.
Concerns remain
The Employment Rights Act, which received Royal Assent in December, aims to improve job security and living standards. However, the BRC said concerns remain over how reforms including guaranteed hours could affect the availability of flexible roles that many younger workers rely on.
Since April last year, the cost of employing a full time entry level worker has risen by 10%, while part time employment costs have increased by more than 13%.
BRC survey data also found 52% of leading retail chief finance officers plan to reduce hours or overtime in response to rising employment costs, while 32% expect to freeze recruitment.
The organisation warned that if implementation of the Act increases costs or reduces flexibility further, businesses may reassess hiring plans, with entry level roles likely to be among the first affected.
Entry roles affected
Helen Dickinson, chief executive of the BRC, said: “Local, flexible jobs are important first steps into work for young people across the country.
“Whether it is a Saturday job to earn extra cash around studies or doing shifts while balancing caring responsibilities or other life commitments, these roles are relied upon and valued by so many.
“Retailers want the Employment Rights Act to live up to its ambition and raise standards and improve job security. But at a time when youth unemployment is high and rising, Government must ensure reforms tackle bad practices without choking off routes into a first job.”
A British Beer and Pub Association (BBPA) spokesperson said: “Just over half of the pub sector’s workforce is aged 16 to 24, making our industry one of the most important employers for young people.
“It’s vital that the Government continues to work with the beer and pub sector to ensure the Employment Rights Act is implemented fairly and in a way that protects these crucial first steps on the career ladder.
“It is also essential that the Government listens to the industry and takes action to mitigate sky high employment costs, which are forcing many pubs to cut back on their workforce and opening hours.”
Hospitality operators have previously warned the reforms could create new operational pressures around recruitment, contracts and staffing models, particularly for businesses reliant on flexible labour.
Last week The MA reported concerns from pub and hospitality operators that the legislation could create a “field of landmines” for businesses already facing rising employment costs and regulatory pressures.
