Young workers could be among the biggest casualties of the government’s new workers’ rights legislation, with retailers warning the reforms risk worsening Britain’s growing youth unemployment problem.
Industry leaders say the Employment Rights Act, which recently received royal assent, could lead employers to scale back flexible and entry-level roles as businesses adjust to higher employment costs and tighter regulation. The British Retail Consortium (BRC) argues that the changes could unintentionally restrict opportunities for younger workers who often rely on part-time or flexible jobs as their first step into employment.
The warning comes as youth unemployment continues to climb across the UK. Official forecasts suggest overall unemployment could reach 5.3 per cent this year, while joblessness among younger people has already reached its highest level in more than a decade.
Former Labour health secretary Alan Milburn, who is currently leading a government-commissioned review into youth employment and economic inactivity, has described the situation as an “existential crisis” for Britain, highlighting the scale of the challenge facing policymakers.
Retail leaders fear the new employment rules could discourage companies from offering the type of flexible roles that many younger people depend on.
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