Retail Sector's Role in Youth Employment: A Call for Government Support

Recent research conducted by the Centre for Economics and Business Research (CEBR) on behalf of Marks & Spencer (M&S) reveals that the retail sector is the leading industry for youth employment in the UK, with nearly one in four young people aged 16-24 starting their careers in this field. This figure is more than double that of any other industry. The retail sector's contribution to the economy through job creation for young people is significant, amounting to £7.4 billion in gross value added, which represents 7% of the retail industry's total economic impact in 2024.

M&S study reveals retailers help more youngsters into work than any other industry'Retail helps more young people into work than any other sector'Data: Retail industry provides the most job opportunities for young peopleM&S says retail leads employment sectors for young people but calls for government supportRetail is helping double the amount of young people into work

M&S has been proactive in addressing youth unemployment through its Marks & Start employability scheme, which has supported over 12,000 young people over the past two decades. The program provides four-week work experience placements aimed at helping individuals facing barriers to employment build essential skills and confidence. M&S aims to assist an additional 2,000 young people in the next three years. Notably, the completion rate for the Marks & Start program reached a five-year record high of 91%, with 88% of participants offered permanent jobs.

Retail is helping double the amount of young people into work'Retail helps more young people into work than any other sector'M&S says retail leads employment sectors for young people but calls for government supportM&S calls on government for employer National Insurance relief for retailData: Retail industry provides the most job opportunities for young people

The research highlights that mental health issues are a significant barrier to employment for young people, with 28% indicating that such challenges have prevented them from applying for jobs. In response, M&S has partnered with the mental health charity YoungMinds to enhance the support provided to participants in the Marks & Start program. This collaboration has raised over £4.4 million, benefiting more than six million young people.

M&S says retail leads employment sectors for young people but calls for government support

M&S CEO Stuart Machin has called on the UK government to provide Employer National Insurance Contribution (NIC) relief for businesses that hire young people and the long-term unemployed. This measure is expected to unlock significant job opportunities, with estimates suggesting it could create over 100,000 jobs. Additionally, M&S urges the government to reform the Apprenticeship Levy to allow businesses greater flexibility in utilizing funds for employment opportunities.

M&S calls on government for employer National Insurance relief for retail

The current landscape of youth unemployment is concerning, with 948,000 young people classified as not in Employment, Education, or Training (NEET) as of December 2024, the highest level in a decade. Furthermore, there are 650,000 fewer young people in employment compared to three decades ago. Long-term sickness, particularly due to mental health issues, has driven 300,000 young people into economic inactivity since 2019, marking a 55% increase from pre-pandemic levels.

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While M&S has made strides in supporting youth employment, critics argue that more systemic changes are needed to address the root causes of youth unemployment. Jonathan Townsend, CEO of The King’s Trust, emphasizes the necessity for additional support to help young people overcome significant challenges in securing employment.

'Retail helps more young people into work than any other sector'

• “Retail is a powerful engine of social mobility. At a time when so many young people are struggling to get their foot on the career ladder, this industry can give them that first crucial opportunity – particularly those facing the biggest barriers.” — Stuart Machin, CEO of Marks & Spencer

'Retail helps more young people into work than any other sector'

• “Jonathan Townsend, CEO of Marks & Start partner The King’s Trust, said: “Young people continue to face significant challenges to their employment prospects, but there are so many young people who are ready to work and just need an additional support to make that happen.” — Jonathan Townsend, CEO of The King’s Trust

M&S calls on government for employer National Insurance relief for retail

In conclusion, while the retail sector plays a crucial role in providing employment opportunities for young people, collaborative efforts between businesses and the government are essential to enhance these initiatives and address the growing challenges of youth unemployment.

'Retail helps more young people into work than any other sector'