Britain’s economy will see a dramatic decline in job opportunities, particularly at the entry level, the boss of fashion retailer Next NXT said on Thursday, partly blaming Labour government policies.
Wolfson, also a Conservative peer who sits in the upper house of parliament, said employment was facing the triple pressures of rising costs, increasing regulation, and displacement through mechanisation and AI.
“I think what we will see is vacancies declining quite dramatically in the economy,” Next CEO Simon Wolfson told Reuters in an interview.
“You’ll begin to hear more and more people who are leaving full-time education or are looking to re-enter the workforce talking about how hard it is to find jobs,” he said after Next reported first half results.
Wolfson, in the job for 25 years and by far the longest-serving head of a FTSE 100 business, said Next’s own job vacancies are down around 35% and applications for jobs are up around 75% compared to two years ago. His company employs 41,000 people in the UK.
Official data published this week showed the UK jobs market lost a little more steam, with the number of workers on firms’ payrolls falling for a seventh month in a row and broader wage growth edging down.
Wolfson has previously said that the Labour government’s Employment Rights Bill will hinder recruitment, and said on Thursday that its Renters’ Rights Bill “will serve to make that market more static”.
He said he expects “anaemic growth” at best for the UK economy over the medium to long-term. Progress will be constrained by not just declining job opportunities and new regulation but also government spending commitments that are beyond its means, and a rising tax burden that undermines productivity, he said.
“There’s very little by way of policy we can see that’s going to stimulate the economy, and a number of bills (legislation) that pose a risk to growth,” Wolfson added.
However, he described as positive government proposals to speed up and relax the construction planning process.
Source: Reuters
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