Supermarket giants warn youth unemployment crisis could worsen without urgent action from Keir Starmer

The bosses of Britain's biggest supermarket chains have joined more than 80 retail leaders in a direct appeal to Sir Keir Starmer, warning that rising employment costs risk shutting young people out of the jobs market.

Chief executives from Tesco, Sainsbury's, Morrisons and Asda have signed a letter sent to Downing Street through the British Retail Consortium (BRC), urging the Prime Minister to take action to tackle growing levels of youth unemployment.

The intervention comes as unemployment among young people has risen to its highest level in more than a decade while job vacancies across the wider economy have continued to decline.

Retail leaders argue that the sector has long provided a crucial route into employment for young people, offering entry-level positions and opportunities to build long-term careers.

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However, they warn that increasing costs and changes to employment regulations are placing that role under growing pressure.

In the letter, business leaders said the traditional "ladder of opportunity" provided by the retail sector is now "wobbling" as employers face mounting financial burdens.

The correspondence states: "Retail has always been where any young person can start with few qualifications, limited experience and build a lasting career.

"Many of us started on the shop floor, and it remains central to how our businesses grow and compete."

The letter was signed by more than 80 retail executives representing businesses across the sector.

Retailers employ hundreds of thousands of workers across stores, warehouses, distribution centres and head office operations, with supermarkets among the country's largest private sector employers.

Industry leaders say the sector continues to provide thousands of opportunities for young people every year through apprenticeships, graduate schemes and entry-level jobs.

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The BRC said hiring younger workers has become "more expensive than ever" and warned that recent changes introduced through the Employment Rights Act have increased complexity for employers.

Helen Dickinson, chief executive of the British Retail Consortium, said Government policy must support employers if ministers are serious about reducing youth unemployment.

Ms Dickinson said: "The message from retail is clear: if government is serious about tackling youth unemployment, it cannot keep making it more expensive to create jobs."

Retailers have been particularly critical of Labour's decision to increase employer National Insurance contributions.

The sector has also raised concerns about proposed reforms to age-related pay structures.

Industry figures argue that higher employment costs could discourage businesses from recruiting younger workers and reduce opportunities for progression within organisations.

The warning comes against the backdrop of wider concerns about the number of young people who are not in education, employment or training.

A recent report led by former health secretary Alan Milburn estimated that as many as 1.25 million people aged between 16 and 24 could be outside education, employment or training by the end of the decade.

Business leaders have warned that such a trend could have long-term consequences for economic growth and social mobility.

Labour has defended its approach, pointing to measures already announced to support young people into work.

A Government spokesman said: "We are already working in partnership with businesses to tackle youth unemployment and create 50,000 more opportunities for young people as part of our £2.5billion youth employment support package.

"From this month, we're rolling out £3,000 payments, covering wages for six months for those out of work long-term, and cutting hiring costs for under-21s and apprentices."

Ministers have argued that the package demonstrates Labour's commitment to helping young people enter the workforce while supporting employers with recruitment costs.

The intervention from some of the UK's largest retailers is likely to increase pressure on ministers as they seek to balance support for workers with concerns from businesses over rising employment costs and job creation.

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