Wickes CEO Urges Government to Ease Hiring Costs for Young Workers

David Wood, the chief executive of DIY retailer Wickes, has joined other retail leaders in urging the government to simplify the process of hiring young people. Wood stated that employing staff has become "twice as expensive" compared to two years ago, impacting the company's ability to manage a flexible workforce.

Wickes currently employs a significant portion of young workers, with 30% of its in-store staff aged between 16 and 24. Many of these employees work part-time, a flexibility that suits their lives, Wood explained.

His comments come as Wickes reported a 2.1% rise in group revenues to £865.3 million in the six months leading up to June, despite economic challenges. The company anticipates opening four to five new stores and refurbishing 12 by the end of the year, with a long-term goal of reaching 300 stores. Digital sales investments have also contributed to improved trading.

While customers have felt the pressure of the cost of living, including higher mortgage rates and energy costs, Wickes' customer base, described as slightly older and more affluent than the UK average, has helped stabilize sales. The company reported a 1.7% increase in pre-tax profits to £24.6 million for the six-month period and expects a 10% profit increase for the full year.

Concerns over youth unemployment have been growing, with a notable number of individuals aged 16-24 classified as 'not in education, employment, or training' (NEETs). Retail and hospitality sectors have expressed frustration over recent changes to National Insurance contributions, which have increased the cost of employing staff, particularly those in part-time and lower-paid roles. The increase in employer National Insurance contributions from 13.8% to 15% and the reduction of the secondary threshold to £5,000 in the 2024 budget have been cited as significant burdens.

Similar sentiments have been voiced by other business leaders. Brewdog co-founder James Watt criticized the government for making it more difficult and expensive for businesses to hire people, arguing that they are not taking ownership of their role in this issue. Asda boss Allan Leighton has also called for a shift in government policy to prioritize growth-enhancing measures over heavy business taxes. The British Retail Consortium estimates that the combination of National Insurance changes and minimum wage increases has cost the retail sector £6.5 billion and resulted in the loss of 115,000 jobs. Major retailers have reportedly urged the Chancellor to raise the National Insurance contributions threshold to £6,000 to alleviate these costs and encourage hiring.