"The cost of employing people into entry-level jobs leapt by over 10% for retailers, driven by rises in National Insurance Contributions and National Living Wage."
"Changes to employer NICs and higher National Living Wage will cost the retail industry over £5bn annually, rising to £7bn with the impending packaging tax."
"Part-time jobs are vital for easing people back into the workforce, yet costs from tax changes could lead to a reduction of 160,000 part-time roles."
"Retail margins are thin at 2-4%, and the added costs from NICs and wages could threaten the viability of many retail businesses."
The recent hike in National Insurance Contributions and National Living Wage is significantly raising the employment costs in retail, especially for entry-level and part-time jobs, by more than 10%. With anticipated additional increases due to new packaging taxes, the total annual cost to the retail sector could exceed £7bn. The stringent fiscal measures threaten the existing 1.5 million part-time retail posts, with projections suggesting a potential loss of over 160,000 jobs in this sector. Slim profit margins exacerbate the sustainability challenges retailers face amid these changes.
Read at London Business News | Londonlovesbusiness.com
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