Prepping young people for work is futile if job creation stalls, according to the British Retail Consortium. Ahead of the Alan Milburn NEET report, industry leaders warn that rising employment costs and mounting red tape make entry-level hiring nearly impossible for businesses.
Picture a single-decker bus carrying forty young people aged 16 to 24. Twenty-three step off to study, and another 12 leave for the business district to work. That leaves five individuals behind, representing the nearly one million young people currently not in education, employment, or training across the nation.
Those five passengers mirror a demographic crisis that costs the economy £125bn annually. Helen Dickinson, chief executive at the British Retail Consortium, wrote in City AM that this generation misses out on essential purpose, financial independence, and skill development.
Waiting for Alan Milburn
One in eight young people remains neither learning nor earning. The upcoming Young People and Work report from Alan Milburn aims to tackle this systemic failure. Dickinson said that while the welfare system must incentivize part-time work, government policies must also stimulate job creation.
Retail serves as a vital entry point, providing 2.8 million flexible local jobs without strict qualification hurdles. Yet between 2024 and 2027, the sector faces an £8.5bn surge in employment costs. Over that same timeframe, retail employment has dropped by more than 120,000 roles.
Stifling Red Tape
Economic growth has slowed dramatically while the cost of hiring young workers skyrocketed. Businesses respond by scaling back recruitment, leaving inexperienced applicants at the very back of the queue.
Dickinson argued that the government possesses two primary levers for recovery. First, officials must boost consumer spending power. Second, they must cut the financial risks of hiring by reversing employer National Insurance increases.
Industry Action Plans
Retailers continue to launch independent initiatives to break the cycle. Through the Opening Shift program backed by the Department for Work and Pensions, over 50 retailers have pledged 11,000 placements with a goal of helping 100,000 young people secure steady employment.
The upcoming recommendations from the Alan Milburn report must serve as a turning point. Making individuals work-ready means little if entry-level vacancies do not exist. Government action on employment costs will determine whether this generation finally gets moving or stays trapped on the bus.
