The British Retail Consortium (BRC) has warned that opportunities for young people in retail could decrease if planned reforms aimed at strengthening worker security come into force.

The organisation said that The Employment Rights Act, which received Royal Assent last December, could end up reducing the availability of flexible, entry-level roles.

According to BRC data, 70 per cent of Gen Z workers, aged between 18 and 29, say flexibility at work is important to them. This rises to 73 per cent of those who are working part time.

The BRC said that flexible roles are not loopholes or poor practices but are actively chosen by people balancing study and other commitments or wanting to gain work experience.

The new legislation aims to improve job security and living standards, but the BRC said retailers are concerned in how it will be implemented.

The warning comes as the Office for Budget Responsibility forecasts unemployment to reach 5.3 per cent this year, rising to 16.1 per cent among 16–24-year-olds which is the highest level in over a decade.

The BRC pointed out that retail plays a central role in providing these opportunities. Around 780,000 retail jobs are held by 16-25 year-olds, accounting for 28 per cent of the industry’s workforce.

The BRC said that taking the wrong approach on provisions such as guaranteed hours risks adding new costs and administrative complexity.

Since April last year, the BRC said the cost of employing a full-time entry-level colleague has risen by 10 per cent and 13 per cent for someone employed part time.

Data from the BRC shows 52 per cent of chief financial officers plan to reduce hours or overtime in response to these rising employment costs, while 32 per cent expect to freeze recruitment.

If implementation further increases costs or rigidity, the BRC said businesses will inevitably reassess hiring plans, and entry-level and short-hour roles will likely be the first to be scaled back.

This would result in fewer opportunities for the very young people, which the reforms are intended to support.

The BRC called on the Government to ensure implementation tackles genuine exploitation without undermining the availability of flexible roles.

This includes recognising that hours during seasonal peaks cannot be offered throughout the year and taking a realistic approach to expectations for trade union access that do not represent a retailer’s workforce.

As secondary legislation goes out to consultation, the BRC said ministers must work closely with industry to avoid unintended consequences for youth employment.

Helen Dickinson, chief executive of the BRC, said that local jobs are an important entry point into work for young people, allowing them to earn extra cash around studies or caring responsibilities.

“Retailers want the Employment Rights Act to live up to its ambition and raise standards and improve job security,” she added. “But at a time when youth unemployment is high and rising, Government must ensure reforms double down on tackling bad practices and don’t choke off the routes into a first job for the next generation.”

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