UK high street chain warns over youth unemployment crisis

Lord Simon Wolfson, chief executive of the retail group Next, has blamed higher labour costs and slow growth in the UK economy for the shrinking of vacancies.

Next has stores in Oxford, with stores in the Westgate and Cowley Retail Park, as well as at the Orchard Centre in Didcot and Bicester’s Shopping Park.

Lord Wolfson told the BBC’s Big Boss Interview: “You can really see a dramatic fall in entry-level opportunities.

“In our stores just two years ago we had 10 applicants for every single job vacancy in our shops, that’s high.

“Today, that figure is at 19.

“I think that doubling of applicants for shop jobs is indicative of just how big the crisis is in youth unemployment at the moment.”

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Nearly one in six young people aged 16 to 24 were out of work in the first three months of 2026 – the highest level since 2015.

This comes as many retail shops are closing due to low profits.

Claire’s, Russel & Bromley, Dr. Martens, and Soletraders have all left Oxford in the pat year due to either the end of the company or to low sales in that particular store.

Lord Wolfson said the ‘tax on entry-level employment’ was partly behind the drop in opportunities, saying last year’s national insurance rate hike and increases to the national minimum wage had pushed up the cost of labour and “has to be reversed”.

But he said that “much more importantly” there needed to be more growth across the whole economy.

“If you’ve got fewer jobs, then the people who suffer the most are those with the least experience,” he said.

Chief executive, Lord Simon Wolfsom (Image: Next/PA Wire)

The retail boss, who is also a Conservative peer, also took aim at the Government’s Employment Rights Act which gives workers the right to guaranteed working hours over zero-hour or low-hour contracts.

New measures also coming into force next year will stop employers from rejecting flexible working requests without a valid reason.

He described the measures as “restrictions on flexible part-time working” and said “the result of that is we will offer fewer hours and (fewer) extra hours at Christmas”.

“That’s going to be bad news for our colleagues who want the extra hours, particularly students, and bad news for our customers because service won’t be as good,” he told the BBC.

The Oxford Youth Unemployment Hub runs from Monday to Friday at Rose Hill Community Centre.

The hub is run in partnership with the job centre, helping others with CVs, cover letters, and job searches.

The hub offers help and support for 16 to 25 year olds who are not in education, employment, or training.