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flag UK retailers cut hours and jobs due to rising labour costs, with 61% planning reductions and 84% citing labour as top concern.

flag 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. flag 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. flag 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%. flag Retailers warn that rigid labour policies could eliminate flexible and entry-level roles, while many plan to boost automation and productivity to offset cuts.

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