Next boss warns of 'dramatic' fall in entry-level jobs

The chief executive of Next has warned of a 'dramatic fall' in UK entry-level job opportunities, citing a near-doubling of applicants for shop roles as a symptom of a deepening youth unemployment crisis [1]. Lord Wolfson said the retailer now receives 19 applicants for every shop job, up from 10 just two years ago [1]. He attributed the squeeze on youth employment to broader economic problems and specific government policies, including a ban on zero-hours contracts set to take effect next year [1]. The company's annual wage bill has risen by £70m due to recent policy changes, which Wolfson argues is holding back job creation [1]. The government's Employment Rights Act, which bans 'exploitative' zero-hours contracts to provide workers with more predictability, is a point of contention [1]. A Treasury spokesperson defended minimum wage increases, stating they boost pay for over 200,000 young workers, and argued that cutting wages 'during a time of global uncertainty is not the answer' [1]. This global context includes significant economic disruption; the 2026 Iran war and closure of the Strait of Hormuz triggered what the International Energy Agency called the 'largest supply disruption in the history of the global oil market,' contributing to inflation and recession risks [2]. Lord Wolfson contends that such external pressures, combined with domestic regulations, are stifling growth. 'All of these things are holding the economy back and if government could just take its foot off the brakes, we could have a much, much faster growing economy,' he said [1]. The debate over job creation intersects with long-standing discussions on structural unemployment. Technological unemployment, the loss of jobs due to technological change, is a key type of structural unemployment, historically seen with mechanized looms and more recently with automated retail systems [4]. Next itself is increasingly using automation, such as self-scanning lockers for returns [1]. The political landscape adds another layer. The current government, led by Prime Minister Keir Starmer since a landslide Labour victory in 2024, oversees the Department for Business and Trade, which is scrutinized by the parliamentary Business and Trade Select Committee [5][6][8]. Wolfson's call for reversing employer National Insurance hikes and planning reforms is a direct appeal to this administration [1]. He insists the solution lies in boosting overall economic growth rather than targeted youth schemes, warning that without profit, businesses cannot survive to provide any jobs at all [1].