Next CEO Simon Wolfson asserts that Labour's employment policies, including national insurance hikes and minimum wage increases, have caused a 'dramatic fall' in youth job opportunities, citing a doubling of applicants per entry-level store role. A supporting IoD poll shows 86% of bosses believe the Employment Rights Act will harm growth, with most planning to hire less and automate more, as the government defends its measures and youth unemployment reaches a nine-year high.
The chief executive of Next , Simon Wolfson , has launched a strong critique of the UK government's employment policies, arguing they are responsible for a significant decline in job opportunities for young people.
Wolfson, a Conservative peer, pointed to data from his own company showing that the number of applicants per entry-level store position has doubled from ten to nineteen over the past few years. He described this as clear evidence of a 'dramatic fall' in youth entry-level jobs and a 'crisis' in youth unemployment. His comments directly contradict the stance of Work and Pensions Secretary Pat McFadden, who recently lamented the disappearance of traditional Saturday jobs in retail.
Wolfson placed the blame squarely on Labour's policy agenda, citing increases in employer national insurance contributions and the minimum wage as key factors making it prohibitively expensive to hire young, inexperienced staff. He warned that further planned employment rights reforms, particularly those guaranteeing hours for zero-hours contract workers, would exacerbate the problem by making it financially unviable to offer flexible, seasonal work like weekend, summer, or Christmas shifts.
This would reduce service quality for customers and cut off a vital income source for students and young people. Wolfson called for a reversal of the recent tax and wage hikes on 'entry-level' employment and argued that Labour's approach of 'nice-sounding slogans' is 'economically disastrous.
' His views appear to be supported by a recent poll from the Institute of Directors (IoD). The survey revealed that 86 percent of business leaders believe the government's Employment Rights Act will harm UK economic growth. Specifically, 63 percent said they are less likely to hire new staff, and 57 percent are more inclined to invest in automation.
IoD policy advisor Alex Hall-Chen stated that businesses are already responding by halting hiring plans, outsourcing roles, and automating positions in reaction to the reforms. In defence, a government spokesperson dismissed Wolfson's criticism as 'neither new nor surprising' and highlighted his high remuneration of over £7 million the previous year, suggesting he should appreciate measures 'to make work pay' for ordinary employees. The spokesman framed the policies as essential for financial and job security.
The debate unfolds against grim official statistics. Data released last week showed youth unemployment (ages 16-24) at 16.2 percent, the highest since early 2015 and over three times the overall 5 percent rate. The number of young people classified as NEET (not in employment, education, or training) has also surged close to one million.
Adding a long-term perspective, an upcoming report from former Labour health secretary Alan Milburn is expected to reveal that 70 percent of young people claiming health and disability benefits continue to do so for a decade, indicating deep-seated issues. Tory business spokesman Andrew Griffith entered the fray, stating that Labour 'were warned time and time again' that their policies on national insurance, employment regulation, and above-inflation minimum wage increases would lead to a 'catastrophe of youth unemployment.
' Wolfson elaborated that the youth unemployment crisis is symptomatic of a broader employment problem; when overall job numbers stagnate, those with the least experience-the youngest workers-are always the most affected. He predicted the situation will worsen when the new part-time working regulations are implemented, as they force guaranteed hours based on recent patterns, ignoring seasonal fluctuations.
This will compel businesses like Next to reduce the variable hours they offer, particularly during peak periods like Christmas, ultimately harming both employees seeking extra income and customers receiving poorer service. The core conflict centers on a fundamental economic disagreement: whether higher mandated labor costs and stronger employment protections stimulate demand and security or stifle hiring, flexibility, and growth.
Wolfson and employer groups argue the current trajectory is crippling for entry-level job creation, while the government maintains its policies are fundamentally pro-worker and necessary for a fairer economy. The IoD data provides quantitative weight to the employer concerns, showing a direct correlation between the regulatory reforms and intended reductions in hiring and increases in automation.
With youth unemployment metrics at multi-year highs and the NEET figure nearing a million, the political and social stakes of this policy clash are extremely high
Youth Unemployment Employment Rights Act Simon Wolfson Next National Insurance Minimum Wage Institute Of Directors UK Economy Labour Policy Entry-Level Jobs Automation Zero-Hours Contracts
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