Next CEO Warns Dramatic Decline in Entry-Level UK Jobs as Applicant Numbers Double
Lord Wolfson, the chief executive of Next, has issued a stark warning regarding a “dramatic fall” in entry-level job opportunities across the United Kingdom. He revealed that two years prior, Next typically received 10 applicants for each shop position; this figure has now surged to 19.
“That doubling of applicants for shop jobs is indicative of just how big the crisis is in youth unemployment at the moment,” Lord Wolfson stated, drawing a direct link between this trend and broader economic challenges impacting job creation, particularly for those with limited experience.
Government Policies Under Scrutiny
The Conservative peer also criticised forthcoming government legislation banning zero-hours contracts, arguing it will complicate hiring processes. While the government defends its Employment Rights Act as ending “one-sided flexibility” and providing a “baseline” of security, Lord Wolfson contends the retail sector requires greater flexibility, particularly for students seeking additional hours during holidays.
Furthermore, he urged the government to reverse the hike in employer National Insurance contributions and manage minimum wage increases, asserting that overall economic growth is the primary solution to a flagging jobs market. The Treasury countered by highlighting that the national minimum wage increase benefits over 200,000 young workers and noted lower National Insurance for under-21s, alongside a £2.5bn youth employment support package.
Latest figures underscore the gravity of the situation, with the unemployment rate for 16-to-24-year-olds reaching 16.2%, its highest since 2014 and more than three times the general unemployment rate of 5%.
Lord Wolfson also pointed to the increasing use of automation, such as self-scanning lockers, within Next’s operations as a consequence of rising costs. Despite Next’s commercial success, with increased profit expectations of £1.2bn and 6.2% sales growth in the first quarter, he rejected claims the company prioritises shareholders over workers, explaining that public companies are owned by numerous savers with modest investments.
Instead of piecemeal solutions for youth unemployment, Lord Wolfson advocated for government focus on fundamental reforms to planning laws, energy policy, and transport networks to stimulate broader economic growth. He cited the vast disparity in land prices with and without planning permission as an example of regulatory burdens stifling development, calling on the government to “take its foot off the brakes.”
