[UK] Next chief exec warns of 'dramatic' fall in entry-level jobs

In the UK, Lord Wolfson, the chief executive of clothing retailer Next, has warned of a "dramatic fall" in the number of entry-level job opportunities, BBC News reports.

Speaking to the BBC, Lord Wolfson stated that Next typically received 10 applicants for every shop-based job two years ago, but now that number has risen to 19.

"That doubling of applicants for shop jobs is indicative of just how big the crisis is in youth unemployment at the moment," he said.

The Conservative peer reportedly added that changes to employment law coming into force next year would make hiring more difficult. However, the government says its changes provide a "baseline" of security and predictability for staff.

In addition, Lord Wolfson called on the government to reverse the increase in employers’ National Insurance rate, together with minimum wage rises. But he stated that economic growth was the main solution to boosting the jobs market.

"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," he said.

A Treasury spokesperson stated that increasing the national minimum wage boosted pay for more than 200,000 young workers, and that employer national insurance contributions were lower when hiring under-21s.

"Cutting wages for the lowest paid during a time of global uncertainty is not the answer," the spokesperson said. They added that a £2.5bn youth employment support package would "deliver a million opportunities across the country".

According to a Department for Business and Trade spokesperson, the government's Budget allowed it to stabilise the economy and deliver support for families and businesses.

"Lord Wolfson, who earned more than £7m last year, will understand just how important our measures to Make Work Pay are for the financial and job security of working people," the spokesperson said.

Concerns are reportedly growing about the number of young people out of work. Latest figures show the unemployment rate for 16 to 24-year-olds is 16.2 per cent, the highest since 2014, and more than three times the general unemployment rate of 5 per cent.

Source: BBC News

(Quotes via original reporting)

In the UK, Lord Wolfson, the chief executive of clothing retailer Next, has warned of a "dramatic fall" in the number of entry-level job opportunities, BBC News reports.

Speaking to the BBC, Lord Wolfson stated that Next typically received 10 applicants for every shop-based job two years ago, but now that number has risen to 19.

"That doubling of applicants for shop jobs is indicative of just how big the crisis is in youth unemployment at the moment," he said.

The Conservative peer reportedly added that changes to employment law coming into force next year would make hiring more difficult. However, the government says its changes provide a "baseline" of security and predictability for staff.

In addition, Lord Wolfson called on the government to reverse the increase in employers’ National Insurance rate, together with minimum wage rises. But he stated that economic growth was the main solution to boosting the jobs market.

"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," he said.

A Treasury spokesperson stated that increasing the national minimum wage boosted pay for more than 200,000 young workers, and that employer national insurance contributions were lower when hiring under-21s.

"Cutting wages for the lowest paid during a time of global uncertainty is not the answer," the spokesperson said. They added that a £2.5bn youth employment support package would "deliver a million opportunities across the country".

According to a Department for Business and Trade spokesperson, the government's Budget allowed it to stabilise the economy and deliver support for families and businesses.

"Lord Wolfson, who earned more than £7m last year, will understand just how important our measures to Make Work Pay are for the financial and job security of working people," the spokesperson said.

Concerns are reportedly growing about the number of young people out of work. Latest figures show the unemployment rate for 16 to 24-year-olds is 16.2 per cent, the highest since 2014, and more than three times the general unemployment rate of 5 per cent.

Source: BBC News

(Quotes via original reporting)