UK retailers plan to cut staff hours and jobs due to rising employment costs and a gloomy outlook for the economy. The British Retail Consortium (BRC) survey shows 61% of finance bosses want to reduce working hours or overtime. Over half (55%) plan to cut head office jobs, and 42% expect store job reductions. The retail sector lost 74,000 jobs last year partly because of new technologies like AI marketing, stock tools, and automated tills. Retailers aim to use more technology to cut labour costs after employment expenses rose by £5 billion in 2025. This was driven by higher employer national insurance and a bigger minimum wage. Retailers face fierce competition from low-cost online firms such as Shein, Vinted, and Temu. Demand is weak as households deal with higher food and energy bills and try to save more amid job worries and global uncertainty. The BRC survey found 69% of retail finance chiefs felt “pessimistic” or “very pessimistic” about the future, up from 56% last year. Only 14% said they were “optimistic.” Helen Dickinson, BRC chief executive, said, "We all want more high-quality, well-paid jobs. But retail has already lost 250,000 roles in five years and youth unemployment is rising fast." She noted 84% of finance bosses listed labour costs among their top concerns, a big jump from 21% last July. Dickinson added, "The economy is fragile with weak wage growth, rising unemployment, and low consumer confidence, all pointing to falling demand. At the same time, businesses face sharply higher input prices, wage bills, and new government costs." She further warned that the upcoming employment rights bill "will make or break job opportunities." Done right, it could support flexible, entry-level roles vital for many who can't work fixed hours. But if the government ignores business needs on issues like guaranteed hours and union rights, it could add complexity, reduce flexibility, and harm entry-level and part-time jobs just when they are most needed.