Lord Wolfson, the chief executive of Next, has stated that the number of entry-level job opportunities in the UK has fallen significantly. He reported that Next now receives 19 applicants for every shop job, a substantial increase from two years ago when the figure was 10. This doubling of applicants, according to Wolfson, is indicative of a crisis in youth unemployment.
Wolfson attributed some of the hiring difficulties to the upcoming ban on zero-hours contracts, which he believes will make recruitment more challenging. He also called for the government to reverse recent increases in employer National Insurance contributions and minimum wage hikes. While acknowledging these factors, he emphasized that broader economic growth is the primary solution to improving the jobs market.
The government responded by highlighting its efforts to support young workers, including a £2.5 billion youth employment package aimed at creating one million opportunities. A Treasury spokesperson noted that the national minimum wage increase benefits over 200,000 young workers and that employer National Insurance contributions are lower for those hiring under-21s. Latest figures indicate the unemployment rate for 16 to 24-year-olds stands at 16.2%, more than three times the general unemployment rate of 5%.
