The chief executive of Next has expressed concerns over a significant decline in entry-level job opportunities and a troubling rise in youth unemployment. Simon Wolfson highlighted that the number of job applicants for Next stores has nearly doubled over the past year due to increased labor costs and sluggish economic growth impacting job availability.
In an interview with the BBC, Lord Wolfson disclosed that there has been a notable decrease in entry-level positions, with the ratio of job applicants to vacancies rising from 10 applicants per job two years ago to 19 applicants currently. This surge in job seekers reflects the severity of the youth unemployment crisis.
Industries like retail and hospitality, facing escalating labor expenses, have seen a substantial drop in job openings and payroll numbers. Recent official data revealed that nearly one in six young individuals aged 16 to 24 were unemployed in the first quarter of 2026, the highest rate since 2015.
Lord Wolfson attributed the decline in job opportunities to increased labor costs, emphasizing the need for economic growth to create more jobs. He also criticized the impact of the Employment Rights Act, particularly new regulations enhancing workers’ rights to guaranteed working hours, which he believes will result in reduced flexibility and fewer work hours offered, affecting both employees and customers negatively.
Meanwhile, John Caudwell, the founder of Phones4u, raised concerns about the alarming levels of youth unemployment, exacerbated by the growing influence of artificial intelligence. He warned that AI advancements could render many young individuals unemployable unless they possess specialized skills like plumbing or electrical work.
Alice Martin, from Lancaster University’s Work Foundation, highlighted the challenging job market for young people, characterized by fierce competition for limited entry-level positions. While acknowledging the changing dynamics in sectors like retail, she stressed the importance of enhancing job quality and ensuring stability and security for workers, especially in light of the prevalence of low-paid and insecure employment among the youth.
