Full Breakdown
Next CEO Warns of Decline in Entry-Level Jobs Amid Policy Shifts
5/26/2026, 11:06:18 AM
Surge in Applications Signals Youth Job Crisis
Lord Wolfson, chief executive of Next since 2001, told the BBC that applications per shop vacancy have risen from 10 to 19 in two years. He linked the trend to a youth unemployment rate of 16.2 % for 16- to 24-year-olds, the highest since 2014. Next employs over 30,000 staff, posted first-quarter sales growth of 6.2 % and raised its full-year profit forecast to £1.2 billion. Wolfson said the wage bill has risen by about £70 million annually due to higher NICs and the minimum-wage increase.
Policy Changes That Retailers Face
The Employment Rights Act, due next year, will require employers to offer guaranteed hours to casual workers, ending most zero-hours contracts. While the legislation is framed as a response to “exploitative” contracts, Wolfson says it reduces seasonal staffing flexibility. Simultaneously, the Treasury has raised the national minimum wage and increased employer National Insurance contributions, which the retailer says raise operating costs.
Official Responses
A Treasury spokesperson said cutting wages “is not the answer” and noted that the minimum-wage rise benefits over 200,000 young workers. The Department for Business and Trade highlighted Budget’s role in stabilising the economy and supporting families, calling measures to “make work pay” for financial security. The Trades Union Congress (TUC) called the guaranteed-hours rule “hugely popular,” saying it will give insecure workers security in their working lives. Alan Milburn, leading a review of NEET youth, warned that ministers have responded with “a series of disjointed jobs programmes” rather than a cohesive strategy.
Criticism and Opposition
The TUC says the regular-hours framework will smooth seasonal peaks and protect holiday employment, countering Wolfson’s claim that the rule will “make it much harder” for retailers to offer extra hours. Critics also note Next’s growing use of automation, such as self-scanning lockers, which reduces demand for entry-level staff and may deepen the shortage of first-job opportunities.
Verbatim Quotes
- “Youth unemployment is really a symptom of wider problems with employment in the economy, 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,” — Lord Wolfson, Chief Executive, Next
- “That doubling of applicants for shop jobs is indicative of just how big the crisis is in youth unemployment at the moment,” — Lord Wolfson, Chief Executive, Next
- “A Treasury spokesperson said: “Cutting wages for the lowest paid during a time of global uncertainty is not the answer.” — Treasury spokesperson
- “This will give insecure workers on variable hours security in their working lives which they are so badly lacking at the moment,” — TUC spokesperson
Outlook
The guaranteed-hours requirement will be enforced from next year, effectively banning most zero-hours contracts. A government-commissioned review of NEET youth is slated to propose a “system reset” for employment programmes, while retailers monitor how legislation, rising labour costs, and automation will shape staffing strategies.
