Next chief executive Lord Wolfson has warned of a “dramatic fall” in entry-level job opportunities in the UK, saying the retailer is now seeing far more applicants for each shop role than it did two years ago. For small businesses, the point is not just what is happening at one large retailer. It is another sign that entry-level hiring is becoming more contested, more expensive and more politically charged.
The BBC reported that Next used to receive about 10 applicants for each shop job, but now typically receives 19. Lord Wolfson linked the squeeze to higher employment costs, including National Insurance, the National Living Wage and planned changes to zero-hours contracts. The government argues that its employment reforms are intended to improve security and predictability for workers.
Small firms do not need to take either side of that argument to recognise the practical issue. If big retailers are trimming the number of starter roles they offer, applicants may start flowing into other local jobs. That can make recruitment look easier at first, because there are more people applying. But it can also make screening harder, raise expectations around hours and progression, and expose gaps in training that smaller employers cannot afford to ignore.
Why entry-level roles matter
Entry-level jobs are often where people learn workplace basics: turning up on time, dealing with customers, handling busy shifts, using stock systems, working in a team and understanding what good service looks like. Retail, hospitality, logistics, care, admin and local services all depend on that pipeline.
When those roles become scarcer, the impact is wider than youth unemployment figures. Smaller employers may find that applicants have less recent experience, need more structured support, or are applying for any available job rather than a role they genuinely want. That does not make them poor candidates, but it does mean the business needs a clearer hiring and onboarding process.
The latest labour-market figures also point to a softer jobs market. The Office for National Statistics reported in May that vacancies had fallen over the year and were below their pre-pandemic level. That wider backdrop matters for SMEs because a looser labour market can change candidate behaviour quickly.
The cost pressure is real
Many small employers have already felt the effect of wage, tax, rent, energy, finance and supplier-cost pressure. For a business with thin margins, taking on a first-job employee is not just a wage decision. There is supervision time, training time, payroll admin, rota cover and the risk that the person leaves before the investment pays off.
That is why some owners delay hiring, increase hours for existing staff, rely more heavily on family help, or use casual labour where the work pattern genuinely fits. BritishSME has also covered how more workers juggling multiple jobs can affect small-employer rotas and retention. These are different stories, but they point to the same pressure: the old assumptions about readily available flexible labour are becoming less reliable.
There is a risk, though, in treating junior hiring as optional for too long. If every firm waits for someone else to train new workers, the local talent pool gets thinner. That can leave small businesses competing later for experienced staff at higher wages, with fewer people ready to step up internally.
What SMEs should check now
The first check is whether every vacancy has a clear purpose. If a role is entry-level, the advert should say what can be learned, what support is provided and what progression could look like. Vague adverts that ask for experience while offering starter pay will struggle to attract the right people.
The second check is onboarding. A small firm does not need a corporate training academy, but it does need a first week plan, named support, basic task lists and a sensible route for questions. That is especially important when applicants are new to work or moving from a different sector.
The third check is retention. Pay matters, but predictability, fair scheduling, respectful managers and visible development matter too. If a worker can see no path beyond the lowest-paid tasks, they may treat the job as temporary even when the business hoped it would become a long-term role.
The fourth check is compliance. Employment rights changes around predictable work and guaranteed hours are part of the background to this debate. Small employers should keep their contracts, rota practices and use of casual hours under review, and take proper professional advice where a change could affect legal obligations.
Do not waste a stronger applicant pool
If more people are applying for local roles, SMEs should not assume that the market has simply turned in their favour. A bigger pile of CVs can still hide a shortage of people with the right attitude, availability and basic skills. It can also slow down decision-making if the business has no simple way to shortlist candidates.
Owners should decide in advance what really matters for the role. For many entry-level jobs, reliability, willingness to learn and customer manner may matter more than a long employment history. A short practical task, a structured interview and a realistic job preview can be more useful than scanning CVs for experience that the job is supposed to build.
The practical takeaway
The warning from Next is a reminder that entry-level hiring is under pressure from several directions at once: higher costs, changing regulation, weaker vacancy numbers and a young workforce facing a tougher first step into employment.
For small businesses, the answer is not to panic or stop hiring. It is to make junior roles more deliberate. Be clear about the job, cost the training properly, manage hours carefully and give new starters a reason to stay. In a tighter entry-level market, the SMEs that train well may find themselves with a stronger team while others are still waiting for ready-made talent to appear.
Sources: BBC News: Next boss warns of dramatic fall in entry-level jobs; Office for National Statistics: UK labour market, May 2026; GOV.UK: Employment Rights Bill overview.
