As results from UK local elections emerge across England, Scotland and Wales, a general consensus appears to be unfolding: voters are not content with the old guard.
Regardless of party political wins and losses, public frustrations about the cost of living, the current Government’s leadership and a lack of solutions to alleviate economic pressure have consistently shown up in polling. Ipsos research carried out in April, for example, found that 62% of voters in England cited the cost of living as the primary factor in their intended voting decision, above the NHS, crime and everything else.
What the ballot papers don’t show as clearly, however, is how much of that frustration traces back to job market prospects for young people. New polling published this week by the British Retail Consortium (BRC), conducted with Opinium, paints a clear picture. Nearly half the public (49%) believe younger unemployed people need more support from the Government when it comes to finding work. In Wales, where voters went to the polls for the 2026 Senedd election on Thursday, that number reached 63%.
It’s clear why public concern is running this high. Official ONS figures show youth unemployment has climbed to a five-year high of 16%, with 713,000 people aged 16 to 24 out of work. Vacancy levels for entry-level roles have also dropped sharply since 2024. The small business snapshot isn’t positive either. Employment Hero’s March Jobs report showed employment growth in retail and hospitality was down -1.1% year on year, with part-time and casual roles contracting further as SMEs pivot toward full-time hiring to manage rising employment costs – squeezing out the flexible, entry-level positions young people have historically relied on.
Why Entry-Level Roles Are Disappearing
The reasons for the decline in those roles are not hard to identify. The Resolution Foundation’s latest research suggests a weaker jobs market is responsible for roughly half the recent rise in youth inactivity. And the BRC has calculated that the cost of employing a part-time entry-level worker rose by more than 13% in 2025 alone – meaning a role that never generated large returns for a business now costs considerably more to fill, making it easier to justify leaving it unfilled.
Those costs have largely risen following the absorption of two increases to the National Living Wage, a higher employer National Insurance Contributions rate and a reduction in the threshold at which those contributions kick in over the past couple of years. For the retail sector alone, the BRC puts the cumulative impact at well over £6bn in just two years.
When asked directly, it’s clear the public is confident about what needs to change. The same BRC polling showed 53% believed the Government should reduce the costs and requirements for employers hiring workers under 25, with only 7% disagreeing.
That places younger unemployed people in an interesting position in the public’s view of who needs the most support. When asked to rank the groups they believe are being most failed in the jobs market, respondents put them first – ahead of people with disabilities (41%), the working-age unemployed broadly (36%) and those who have been out of work for more than a year (35%). The fact that young people now top that list, above groups facing significant structural barriers to employment, reflects how visible the problem has become.
What the Employment Rights Act Means for Hiring
Though the current Government has ushered in stronger commitments to workers’ rights through legislation like the Employment Rights Act, the resultant compliance burdens have complicated the hiring process for many employers.
Responding to this week’s figures, Helen Dickinson, the BRC’s Chief Executive, was direct about what’s at stake: “Opportunities for young people are disappearing in front of our eyes. As our polling highlights, the public recognise the severity of the youth unemployment challenge and want Government to act. We are sleepwalking towards a jobless generation unless Government halts the upwards spiral of employment costs and red tape.”
The BRC’s survey of retail finance directors also found that 52% plan to reduce staff hours or overtime, and a further 32% plan to freeze recruitment entirely. Employment Hero’s research, which covers numerous sectors, found similar levels of caution from employers, with almost a third of UK companies surveyed planning to adjust salaries and benefits in response to upcoming legislative changes.
Kevin Fitzgerald, UK Managing Director at Employment Hero, explained the logic driving those decisions: “Businesses are having to make decisions now about how they structure their workforce going forward. For many, that means being more cautious about hiring, particularly in roles that have traditionally relied on part-time or younger workers. As pressure builds, we may start to see a slowdown in hiring that disproportionately impacts those trying to enter the workforce.”
What Employers Are Asking the Government to Do
With the Resolution Foundation now putting the number of young people not in employment, education or training at close to 900,000 – the highest in over a decade – the narrowing of that entry point is feeding directly into persistent national problems. But employer expectations of the Government are clear. The BRC, the British Chambers of Commerce and other major trade bodies – including UK Hospitality, the Food and Drink Federation and the Recruitment and Employment Confederation – are among those pushing for a reduction in employer NIC thresholds for under-25s, better-funded vocational pathways and a more measured implementation timeline for the Employment Rights Act. Whether those asks gain traction will become clearer when former Health Secretary Alan Milburn publishes his independent review of youth inactivity in September.
What that September review contains, and how the Government responds to an electorate that has made its economic frustrations felt at the ballot box, will go some way to determining whether that 16% unemployment figure will rise further.
