Lord Wolfson, the chief executive of Next, has issued a stark warning that a ‘dramatic collapse’ in entry-level jobs is hollowing out the British economy and creating a generation locked out of the labour market. In an interview with the BBC, Wolfson said the decline in roles for school leavers and young people was ‘a national emergency’, with businesses increasingly automating or outsourcing low-skilled positions. He argued that the government must act to incentivise firms to hire and train young workers, or risk a permanent scar on the nation’s economic fabric.
The comments come amid rising concern over youth unemployment. Official figures show that the number of 16-to-24-year-olds not in education, employment or training (NEET) has climbed to 811,000, a level not seen since 2014. Wolfson pointed to his own company’s experience, where entry-level warehouse and retail jobs have been cut by a third over the past decade due to automation and online shifts. ‘We are losing the rungs on the ladder,’ he said. ‘Without those first jobs, young people miss out on the skills, discipline and confidence that come from working.’
Wolfson, a Conservative peer, has previously clashed with the government over Brexit and immigration. But his intervention on youth jobs is likely to unsettle ministers already grappling with a tight labour market and rising inflation. The Bank of England has warned that persistent skills shortages are fuelling wage pressures, yet Wolfson’s diagnosis suggests that demand for labour is increasingly skewed towards experienced workers.
‘The problem is not a general lack of jobs,’ he explained. ‘It is a lack of accessible, entry-level jobs in businesses that are willing to train. We have a mismatch. Tech firms want coders, but many young people leave school without basic numeracy or literacy. Meanwhile, traditional stepping-stone jobs in retail, hospitality and manufacturing are vanishing.’
Wolfson’s remedy includes a ‘training levy’ on large companies that fail to hire a minimum number of young recruits, along with a cut in employer national insurance for under-21s. He also called for a overhaul of the apprenticeship system, which he described as ‘bureaucratic and failing’. The current levy, he said, often funds courses that are ‘not worth the paper they are written on’.
Trade unions, while wary of Wolfson’s track record on workers’ rights, share his alarm. The TUC’s general secretary, Paul Nowak, said: ‘Lord Wolfson is right to highlight the collapse in entry-level jobs. But the solution is not to slash taxes for employers or make the vulnerable pay for training. We need a proper industrial strategy that creates good jobs, not just any jobs. The government must invest in public services and green infrastructure to provide meaningful opportunities for all.’
The government’s own figures show that the number of apprenticeships started by young people has fallen by almost a third since 2015, when the levy was introduced. A Department for Education spokesperson said: ‘We are committed to ensuring that young people have the skills they need to succeed. Our new “Youth Guarantee” will give every 18-to-21-year-old access to an apprenticeship, training or job. We are also reforming the apprenticeship system to make it more responsive to employer needs.’
But Wolfson dismissed such pledges as ‘too little, too late’. He said: ‘We need a radical shift. The market alone will not fix this. If we do not act, we will see a whole generation written off. That is not just a tragedy for them, it is a disaster for the British economy.’
For the millions of young people struggling to find a first foothold in the world of work, Wolfson’s warning rings true. In Manchester, where I grew up, the textile mills that once took on school leavers have long gone. The call centres that replaced them are now moving to the Philippines. The high street shops that offered Saturday jobs are boarded up. The question is whether Westminster will listen before the ladder is pulled up entirely.
