Full Breakdown
Next chief executive warns of shrinking entry-level jobs as youth unemployment spikes
5/26/2026, 11:38:25 PM
The warning and its context
Lord Simon Wolfson, chief executive of the clothing and homeware retailer Next, told the BBC that the number of entry-level positions in its UK stores has fallen dramatically. Applications per vacancy have risen from ten two years ago to nineteen today, a shift he says signals a deepening youth-unemployment problem. Official figures show the unemployment rate for 16- to 24-year-olds at 16.2 %, the highest level since 2014 and more than three times the overall rate.
Business costs and hiring pressure
Wolfson attributes the hiring squeeze to rising labour costs. He estimates the Employment Rights Act will add £70 million a year to Next’s wage bill and points to higher National Insurance contributions and minimum-wage increases as “taxes on entry-level employment”. Despite these pressures, Next raised its full-year profit forecast to £1.2 billion after a 6.2 % sales rise in the first quarter, and its online channel continues to grow. The retailer is also expanding automation, such as self-scanning lockers for returns, which reduces the need for shop-floor staff.
Government policies under scrutiny
The UK government’s Employment Rights Act seeks to ban most zero-hours contracts and require guaranteed hours for casual workers. A Treasury spokesperson argued that raising the national minimum wage “boosts pay for over 200,000 young workers” and that employer National Insurance contributions are lower when hiring under-21s. The department also highlighted a £2.5 billion youth-employment support package intended to deliver a million opportunities nationwide. The Department for Business and Trade said the recent budget “stabilised the economy and delivered support for families and businesses”.
Criticism and alternative viewpoints
Wolfson called for a reversal of the NIC increase, a pause on further minimum-wage hikes, and broader reforms to planning, energy and transport policy to stimulate growth. He warned that guaranteed-hour contracts could force retailers to “contract for those hours forever”, limiting flexibility for seasonal staffing. The Trades Union Congress (TUC) described the new rules as “hugely popular”, arguing they will give insecure workers “security in their working lives”. Alice Martin, head of research at the Work Foundation, countered that the reforms have not yet taken effect and that blaming current hiring trends on them is “misplaced”.
Conflicting assessments
Wolfson links the decline in entry-level roles to higher employer costs and upcoming legislation, while the Treasury and TUC maintain that the policies protect low-paid workers and do not yet impact hiring. The Work Foundation’s analysis underscores the disagreement, noting that the labour market for young people is “one of the toughest in years” but emphasizing the need for improved job quality rather than policy roll-backs.
Verbatim quotes
- “That doubling of applicants for shop jobs is indicative of just how big the crisis is in youth unemployment at the moment.” — Lord Simon Wolfson, Chief Executive, Next
- “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.” — Trades Union Congress spokesperson
- “These reforms have not yet come into force, so blaming current hiring trends on them is misplaced.” — Alice Martin, Head of Research, Work Foundation
- “If you look at retail over the last 25 years… 70 to 80 % of the names that were there then have gone. And what you can’t do is say, we just won’t run the business for profit because if you don’t run the business for profit, you just don’t stay in business.” — Lord Simon Wolfson, Chief Executive, Next
- “You can’t afford to … have the same number of people in your shop in February as you have in and around Christmas.” — Lord Simon Wolfson, Chief Executive, Next
