Next boss warns of 'dramatic' fall in entry-level jobs

Breaking news from the markets: Next boss warns of 'dramatic' fall in entry-level jobs9 minutes ago Share Save Add as preferred on GoogleMichael Race ,Business reporterandSimon Jack ,Business editorBBCThe boss of Next has warned there has been a "dramatic fall" in the number of entry-level job opportunities in the UK. Lord Wolfson told the that just two years ago, Next typically received 10 applicants for every job in its shops, but that number had since risen to 19. "That doubling of applicants for shop jobs is indicative of just how big the crisis is in youth unemployment at the moment," he said.

He also said a ban on zero-hours contracts from next year would make hiring more difficult. The government calls such contracts "exploitative" and argues its Employment Rights Act ends "one-sided flexibility", making companies provide a "baseline" of security and predictability for staff. Conservative peer Lord Wolfson also called on the government to reverse its hike in the rate employers have to pay in National Insurance, along with minimum wage rises.

Economic Details

But he said economic growth was the main solution to boosting the jobs market. "Youth unemployment is really a symptom of wider problems with employment in the economy, and of course, if you've got fewer jobs, the people who suffer most are the people with the least experience and that is the youngest," the chief executive said. A Treasury spokesperson said increasing the national minimum wage boosted pay for more than 200,000 young workers, and pointed out that employer national insurance contributions were lower when hiring under-21s.

"Cutting wages for the lowest paid during a time of global uncertainty is not the answer," the spokesperson said, adding a £2. 5bn youth employment support package would "deliver a million opportunities across the country". A Department for Business and Trade spokesperson, who pointed out the Next boss was paid £7m last year, said the government's Budget has allowed it to stabilise the economy and deliver support for families and businesses.

There are growing concerns over the number of young people not working. Latest figures show the unemployment rate for 16 to 24-year-olds is 16. 2%, the highest since last 2014, and more than three times the rate of general unemployment at 5%.

Analyst Views

High street retailers and hospitality businesses such as restaurants, cafes and pubs often offer the first experience of work for many young people, especially those still at school and in further education. But businesses including Next have warned that an increase in taxes for employers and higher minimum wages were affecting their ability to create roles, particularly lower paid, part-time jobs. Sluggish economic growth can also have an impact on hiring, as businesses tend to hold off investment.

Lord Wolfson said, as a result of cost increases, Next had fewer staff in individual shops, but its online business was thriving. He previously said government policies had seen Next's wage bill rise by £70m per year.

Economists are analysing what the news means for the markets.