Next CEO Warns UK Jobs Market Is Slipping

18 September 2025

Simon Wolfson, chief executive of the UK retailer Next, has issued a stark warning that Britain is facing a decline in job opportunities, especially for entry-level roles. In an interview published September 18, 2025 Wolfson pointed to rising costs growing regulation and the increasing influence of automation and artificial intelligence as key pressures squeezing the labor market.

Wolfson said that job vacancies at Next have dropped by about 35 percent in the past two years while applications for roles have gone up roughly 75 percent over the same period. The mismatch suggests more people are looking for work but there are fewer opportunities being offered. He said that many who have just left education or who are trying to reenter the workforce will find themselves facing particular difficulty.

The Next boss also criticized recent UK government legislation including the Employment Rights Bill and the Renters’ Rights Bill. He argued that, while well intentioned, these policies may reduce flexibility in hiring and make it harder for companies to adjust staff levels in response to changing demand. He expressed concerns that income tax and employer cost burdens, along with high government spending, will hamper medium to long term growth.

Next reported a 13.8 percent rise in first-half profits and maintained a full-year profit forecast of £1.105 billion. But despite this strong performance the company expects that sales growth will slow in the second half. Next said full-price sales growth will likely shrink to about 4.5 percent in the coming months down from 10.5 percent in the recent quarter when the company had benefited from external pushes including rival firms’ operational disruptions.

Wolfson described the UK economic outlook as “not favourable.” He expects at best “anaemic growth” over the medium to long term, constrained by declining job opportunities increasing regulation rising taxes and government spending commitments that may not be sustainable. One bright spot he pointed to was government proposals to streamline construction planning processes, which Wolfson said could help ease some of the slowdown in development and boost productivity.

Official data appears to validate some of Next’s concerns. Payroll employment has been falling month after month indicating a cooling labor market. Wage growth has also edged down suggesting fewer upward pressures in pay. The combination of fewer vacancies rising applications and slowing wage growth paints a picture of a labor market where demand for workers is softening and competition for jobs is intensifying.

Investors reacted predictably. Next’s shares dropped over 6 percent following the announcement and forecasts for UK sales growth being revised downward. Market watchers have flagged Next as a bellwether for broader economic health given its large UK footprint and ability to show how consumer demand and employment trends are shifting.

For those just entering the job market or looking for new roles the message is sobering. Opportunities appear to be shrinking, and competition is likely to become tougher. As companies grapple with cost pressures inflation and regulatory compliance fewer entry-level positions may be available. Those who are used to relying on flexible or seasonal employment may find their options narrowing.

Wolfson’s warning raises broader policy questions about how rigid labor and employment laws taxes and regulations may weigh on business growth and hiring. The role of automation and AI adds another layer while they may boost efficiency in certain sectors they also risk replacing roles, particularly those that serve as stepping stones for young workers or those without extensive work experience.

Amid this warning there are choices for both government and business. Some of the pressure points tax burdens, regulatory complexity, planning delays can be addressed through policy reform and more efficient bureaucracies. Companies may need to rethink hiring strategies invest in training or automation in strategically complementary ways and focus more on retaining staff during slowdowns.

Next’s situation underscores how even strong earnings do not always insulate businesses from macroeconomic challenges. While its first half results were solid the tone of its warning suggests that the road ahead may be rocky for many in Britain. If the job market continues deteriorating the consequences could ripple outward affecting consumer confidence wages residential investment and broader economic momentum.