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The chief executive of Next, Lord Wolfson, has highlighted a significant decline in entry-level job opportunities across the UK. Speaking to the BBC, he revealed that while the company used to see roughly 10 applicants per position in its retail shops just two years ago, the figure has now nearly doubled to 19 applicants per role. This sharp increase, he explained, reflects the severity of the current youth unemployment crisis.
Lord Wolfson also expressed concerns about the upcoming ban on zero-hours contracts set to come into effect next year, warning it will complicate the recruitment process. The government’s stance on these contracts is that they are “exploitative,” and the proposed Employment Rights Act aims to replace what it describes as “one-sided flexibility” with greater security and predictability for workers. However, Lord Wolfson pointed out that this law could hinder the ability of retailers like Next to offer flexible hours, especially given the seasonal nature of retail work. He emphasized the challenge of committing to consistent hours year-round when customer demand fluctuates sharply at times such as Christmas.
In addition to his concerns about labor laws, Lord Wolfson called on the government to reconsider recent increases in National Insurance employer contributions and rises to the minimum wage, identifying these as factors that limit businesses’ capacity to create more jobs, especially at entry-level or part-time positions. He suggested that economic growth was crucial to improving employment prospects overall. Supporting this, a Treasury spokesperson defended the government’s policies, noting that raising the national minimum wage has benefitted over 200,000 young workers. They also emphasized that employer National Insurance contributions remain lower when hiring under-21s and highlighted a £2.5 billion youth employment support program designed to generate a million opportunities nationwide.
The pressures arising from higher labor costs and slower economic growth have led Next to reduce staff numbers in physical stores, though its online business has continued to flourish. Lord Wolfson revealed that government policies have increased the company’s wage bill by £70 million annually, prompting a shift toward automation, including the adoption of self-scanning lockers to reduce the need for staff at checkouts. Despite robust profits and strategic acquisitions of other retail brands, Lord Wolfson rejected criticisms that Next prioritizes shareholders over workers. He explained that the dividends paid to individual investors are typically modest and argued that profit-making is essential for the survival of any business, particularly in the challenging retail sector where many former competitors have disappeared.
Finally, Lord Wolfson advocated broader government action to stimulate economic growth beyond direct employment initiatives. He urged reforms in planning regulations, energy policy, and transport infrastructure, pointing to inflated land prices caused by restrictive planning permissions as a key barrier. “If government could just take its foot off the brakes, we could have a much, much faster growing economy,” he concluded, emphasizing that a stronger economy would ultimately benefit the job market, especially for young people
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