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UK retailers cut hours and jobs due to rising labour costs, with 61% planning reductions and 84% citing labour as top concern.
UK retailers are cutting staff hours and planning job reductions due to rising employment costs, with 61% of finance directors planning to cut hours or overtime, according to the British Retail Consortium.
Labour costs have surged, driven by a 4.1% National Living Wage increase and new employment laws, pushing 84% of retailers to rank labour costs among their top concerns.
The sector lost 74,000 jobs in 2025, its lowest employment level on record, with unemployment at 5.2% and youth unemployment at 16.1%.
Retailers warn that rigid labour policies could eliminate flexible and entry-level roles, while many plan to boost automation and productivity to offset cuts.
Los minoristas del Reino Unido recortan horas y puestos de trabajo debido al aumento de los costes laborales, con un 61% de ellos planeando reducciones y un 84% citando a la mano de obra como su principal preocupación.