Business leaders told MPs that rising employment costs are making companies less likely to hire young workers, which could reduce entry-level opportunities. Employers say increases to minimum wage and national insurance contributions are pushing firms to prioritise experienced candidates instead of younger applicants. Youth unemployment is approaching 957,000 people aged 16–24, prompting concern among policymakers.

The British Chambers of Commerce (BCC) expects UK unemployment to rise to 5.5% this year and warns that young people will be disproportionately affected. The warning comes as MPs on the Work and Pensions Committee continue an inquiry into rising NEET levels and the barriers young people face when entering the labour market.

A BRC survey shows 70% of younger workers want flexible work, rising to 73% for part-timers. The BRC warns poor reform implementation could limit flexible retail jobs for youth. Retail employs 780,000 youths, making up 28% of its workforce, crucial for entry-level opportunities.