Dragons' Den star Theo Paphitis has urged potential policymakers to create an environment that makes it easier for businesses to hire young people, warning that "entry-level, flexible jobs that give people their first experience of work" are under threat. Official figures indicate that over one million individuals aged 16 to 24 are classified as not in employment, education, or training (NEETs).
Paphitis, whose retail empire includes Ryman, Robert Dyas, and Boux Avenue, highlighted that employers are facing increased pressure from rising minimum wages, national insurance contributions, business rates, and energy costs. He noted that new workers' rights legislation, if poorly implemented, could further complicate hiring. Industry estimates suggest these increased employment costs have added approximately £6.5 billion to the retail sector over the past year.
"What shopkeepers need is a policy environment that helps shoulder the pressure, not pile on extra for good measure," Paphitis wrote in an opinion piece. He stated that when costs rise, businesses become more cautious about hiring, sometimes opting to hire more experienced individuals or handle tasks themselves. This, he warned, jeopardizes the crucial first rungs on the employment ladder for young people.
"For generations, the Saturday job - and the shop floor that so often came with it - gave young people their first real taste of work," Paphitis said, reflecting on his own start at 14. He argued that if the next government is serious about raising living standards and providing opportunities for young people, it should focus on making it easier for businesses to create these foundational roles, not harder.
The retail entrepreneur’s remarks echo concerns raised by other industry leaders, including Alex Baldock, outgoing chief executive of Currys, who has called for reduced hiring risks and costs for businesses. Paphitis emphasized that while retail supports stronger worker protections, legislation must be implemented in a way that does not deter employers from offering opportunities to those with no prior experience.