More than 80 of Britain's biggest high street names, including Tesco, Sainsbury's and John Lewis, have told the Prime Minister that government policies are 'making it harder to hire young people', warning that taxes and red tape are pricing firms out of creating entry-level jobs.
In a letter co-ordinated by the British Retail Consortium (BRC), the bosses – who also included the chiefs of Amazon, M&S and Greggs – said policymakers must revisit national insurance, changes to the national living wage and employment rights if they want to support youth employment.
“More than 80 retail bosses warn government policies are pricing firms out of hiring young people as Neet numbers top 1 million.”
The warning comes a fortnight after official figures showed the number of young people neither working nor learning has jumped beyond one million for the first time since 2013. The Office for National Statistics said the number of 16- to 24-year-olds not in employment, education or training – so-called Neets – rose to 1.01 million in the three months from January to March.
Alan Milburn, who is leading the government's review of the Neets crisis, has warned that figure could surpass 1.25 million within five years. Last week, the government drafted in former Marks & Spencer chief executive Marc Bolland to help get more young people into work.
Helen Dickinson, chief executive of the BRC, said: 'The message from retail is clear: if Government is serious about tackling youth unemployment, it cannot keep making it more expensive to create jobs.'
'Retail and its supply chain account for almost a quarter of all youth employment, making our industry uniquely placed to support young people through flexible, entry-level roles and clear routes for progression. But this first step on the ladder is cracking under the weight of Government-imposed costs and regulations.'
Dickinson added: 'Youth unemployment is a challenge that Government and business must tackle together.'
A government spokesman said: 'We are already working in partnership with businesses to tackle youth unemployment and create 50,000 more opportunities for young people as part of our £2.5 billion youth employment support package. From this month, we're rolling out £3,000 payments, covering wages for six months for those out of work long-term, and cutting hiring costs for under‑21s and apprentices.'
The spokesman concluded: 'We will continue working with businesses to address the challenges set out in the Milburn report and help more young people take their first step into work.'