Next Boss Warns Entry-Level Jobs Are Disappearing Across The UK

The chief executive of Next has sounded the alarm over what he describes as a “dramatic” decline in entry-level job opportunities across the UK, warning that young people are bearing the brunt of a weakening labour market.

Simon Wolfson, widely known as Lord Wolfson, said the retail giant has seen a sharp rise in the number of applicants competing for basic shop-floor roles – a trend he believes reflects a worsening youth unemployment crisis.

Speaking to the BBC, he revealed that just two years ago, Next would typically receive about 10 applicants for every store vacancy. Today, that figure has climbed to 19.

“That doubling of applicants for shop jobs is indicative of just how big the crisis is in youth unemployment at the moment,” he said.

Young Workers Hit Hardest

The warning comes amid mounting concern over the growing number of young Britons struggling to secure employment.

Recent figures show unemployment among 16 to 24-year-olds in the United Kingdom has risen to 16.2% – the highest level since 2014 and more than three times the overall national unemployment rate.

For decades, sectors such as retail, hospitality, cafés and restaurants have served as important entry points into the workforce for students and school leavers.

But businesses say rising operating costs, sluggish economic growth and changing employment regulations are making it harder to create those opportunities.

Lord Wolfson believes the wider economy is largely to blame.

“Youth unemployment is really a symptom of wider problems with employment in the economy,” he said.

“And of course, if you’ve got fewer jobs, the people who suffer most are the people with the least experience and that is the youngest.”

Businesses Push Back Against Rising Costs

The Next boss was particularly critical of government policies that have increased employment costs for companies.

He called on the government to reconsider recent increases in employer National Insurance contributions and minimum wage rises, arguing that businesses are being squeezed at a time when economic growth remains weak.

According to Wolfson, rising costs have already forced Next to operate stores with fewer staff members while investing more heavily in automation and technology.

The retailer has increasingly introduced self-service return lockers and other digital systems aimed at reducing reliance on in-store staff.

Earlier this year, Wolfson reportedly said government measures had increased Next’s annual wage bill by around £70 million.

Despite these complaints, the UK government defended its policies.

A Treasury spokesperson argued that increasing the national minimum wage had boosted pay for more than 200,000 young workers and noted that employers still benefit from lower National Insurance rates when hiring workers under 21.

“Cutting wages for the lowest paid during a time of global uncertainty is not the answer,” the spokesperson said.

The government also pointed to a £2.5 billion youth employment support package designed to create more opportunities nationwide.

The Debate Over Zero-Hours Contracts

Another major concern for retailers is the government’s planned crackdown on zero-hours contracts.

Under reforms contained in the Employment Rights Act, employers will be required to offer more predictable working hours to casual staff.

The government argues the move is necessary to end what it describes as “one-sided flexibility” that leaves workers vulnerable to unstable incomes.

But Lord Wolfson warned the reforms could unintentionally reduce flexibility for both employers and workers.

He said seasonal industries such as retail depend heavily on fluctuating staffing levels, particularly during busy periods like Christmas.

“You can’t afford to… have the same number of people in your shop in February as you have in and around Christmas,” he explained.

“That’s going to be bad news for our colleagues who want extra hours, particularly students who, in holiday time, need extra hours.”

The Trades Union Congress disagreed, insisting the reforms would provide badly needed security for workers with unpredictable schedules.

A spokesperson said the proposed rules would average hours over several months, helping businesses manage seasonal demand while still protecting employees.

“This will give insecure workers on variable hours security in their working lives which they are so badly lacking at the moment,” the union said.

A High Street Survivor In A Changing Industry

Next has long been viewed as one of Britain’s retail success stories.

While many traditional high street brands have struggled or collapsed in recent years, Next has expanded aggressively, acquiring struggling brands including Joules, FatFace, Cath Kidston and Made.com.

The company now employs more than 30,000 people and recently raised its annual profit forecast to £1.2 billion after reporting strong sales growth.

Still, Wolfson rejected suggestions that Next prioritises shareholders over employees.

“When people talk about a company making a billion pounds, they assume that that’s somehow a person with a billion pounds in their pocket,” he said.

“But the nature of public companies is that we are owned by hundreds of thousands of savers whose savings are often very modest.”

“The average dividend we’ll pay out to an individual saver will be around £300 a year.”

Growth, Not Short-Term Fixes

For Wolfson, the solution to youth unemployment goes beyond labour policies alone.

He argued that the government should focus more heavily on stimulating economic growth through reforms to planning laws, transport infrastructure and energy policy.

He pointed to the sharp increase in land prices caused by planning restrictions as one example of policies holding back economic expansion.

“All of these things are holding the economy back and if government could just take its foot off the brakes, we could have a much, much faster growing economy,” he said.

As automation, rising costs and economic uncertainty continue reshaping Britain’s labour market, concerns are growing that younger workers may find it increasingly difficult to gain that crucial first step into employment.

For many businesses and economists alike, the fear is that a shrinking pool of entry-level jobs could leave long-term scars on an entire generation entering the workforce.