More than 80 retail chief executives have written to Keir Starmer calling for urgent action to address rising youth unemployment and warning that government policies are making it harder for businesses to hire young people.

The open letter, coordinated by the British Retail Consortium (BRC), said that increasing employment costs and regulatory pressures are putting entry-level jobs at risk at a time when youth unemployment continues to rise.

The signatories include senior executives from some of the UK's largest retailers and hospitality businesses, including Aldi, Amazon UK, Boots, Currys, Greggs, and Primark.

The letter follows the publication of an interim review by Alan Milburn, which warned that as many as 1.25 million people under the age of 25 could be unemployed within the next five years.

The retail leaders argued that the sector plays a critical role in helping young people enter the workforce. According to the BRC, retail and its supply chain account for almost a quarter of all youth employment in the UK, providing flexible, local and seasonal opportunities for first-time workers.

However, in the letter the industry warned that a combination of higher National Insurance contributions, increases to the National Living Wage and proposed employment reforms are raising the cost of hiring and training new employees.

The group also pointed out the loss of 400,000 retail jobs over the past decade, arguing that further cost pressures could reduce opportunities for young people seeking their first role.

In the letter, business leaders called on the government to establish a joint retail-government taskforce focused on improving routes into employment, reducing the cost of employing young people and ensuring that employment and skills reforms support entry-level recruitment rather than hinder it.

The BRC said retailers are ready to work with government to develop practical measures that increase employment opportunities and create clearer pathways into work for young people across the UK.

Helen Dickinson, chief executive of the British Retail Consortium, said that if the government is serious about tackling youth unemployment, it cannot keep making it more expensive to create jobs.

"Retail and its supply chain account for almost a quarter of all youth employment, making our industry uniquely placed to support young people through flexible, entry-level roles and clear routes for progression,” she added. “But this first step on the ladder is cracking under the weight of government-imposed costs and regulations."

She continued: "Youth unemployment is a challenge that government and business must tackle together. If government wants more young people in work, it must create the conditions that allow businesses to hire, train and develop the next generation."

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