• Next CEO Lord Simon Wolfson warns of a "dramatic fall" in entry-level jobs due to government policies
• Minimum wage and NI contributions are up, with zero-hour contracts set to be banned
• Physical stores are employing more automation to reduce costlier workers

Lord Simon Wolfson, CEO of retail giant Next, has warned UK government policies could cause a "dramatic fall" in entry-level job opportunities, leading to major youth unemployment in the UK and globally.

Wolfson quantified this statement by revealing that the company now received an average of 19 applications per every single shop floor vacancy, up from 10 just two years ago, demonstrating a growing appetite for entry-level roles.

Rising costs and taxes are also to blame for the trend, with rent increases putting extra strain on companies and hikes to the national minimum wage and employer National Insurance contributions also adding to the cost.

Youth unemployment is on the rise, again

The CEO said that rising costs, fuelled partly by government policies, has introduced a new "tax on entry-level employment" whereby the cheapest workers are no longer so cheap. A looming ban on zero-hour contracts only serves to increase costs further, but the government believes this "one-sided flexibility" provides no security to staff.

"That doubling of applicants for shop jobs is indicative of just how big the crisis is in youth unemployment at the moment," Wolfson said in an interview with the BBC.

However, no- and low-hour contracts serve an important role in the retail sector specifically, aiding staffing during busy holiday periods like Christmas. Wolfson worries that the ban could make offering jobs to students and seasonal workers more restricted.

"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," a Department for Business and Trade spokesperson said.

However, the implications of cutting entry-level workers are far-felt. "The people who suffer most are the people with the least experience and that is the youngest," Wolfson said, noting that the company has employed more automation in stores to reduce its reliance on costlier human workers.

Next share prices have fallen since the start of the year, down 2.59% this year to date.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!