Britain’s retail recovery is running on fewer people

December trading numbers and footfall trackers may suggest that UK retail has steadied itself. But behind the apparent normality of peak season sits a more structural concern that cannot be solved with a strong weekend or a good Christmas run: the sector is operating with materially fewer people than it once did. For many retailers, staffing has become the tightest constraint on growth, more limiting than demand, rent or even inflation.

That tension has resurfaced in public debate this week, after a broadsheet noted the quiet exit of Polish workers from the UK and described it as a loss felt keenly by British businesses. In retail, the impact of post-Brexit labour changes has been cumulative rather than dramatic, gradually reshaping store operations and reducing the pool of available workers.

Retail jobs at a record low

According to the Office for National Statistics, there were 2.76 million retail jobs in the UK in September 2025. Using the four-quarter average, a measure that smooths out seasonal hiring spikes, employment stood slightly higher at 2.82 million. Even so, that figure is 74,000 jobs lower than a year earlier and 355,000 below the level seen in 2015. The composition of the workforce has thinned across the board. On a four-quarter average basis, retail employed 1.30 million full-time and 1.53 million part-time workers. Compared with a decade ago, full-time roles are down by 125,000, while part-time jobs have fallen by an even steeper 229,000. For a sector long defined by accessibility and flexibility, the numbers mark a structural shift rather than a cyclical dip.

The loss of entry points into work

Helen Dickinson, chief executive of the British Retail Consortium, was blunt in her assessment. “The loss of 74,000 retail jobs represents the loss of 74,000 opportunities for people right across the country,” she said, noting that retail employment is now at a record low. More jobs have been lost in the past year alone, she added, than are currently employed in the fishing and steel manufacturing industries combined.

Retail’s role goes beyond economic output. It has traditionally provided first jobs for students and young people, flexible roles for parents and carers, and long-term careers for millions. As those roles disappear, the knock-on effects extend into communities as well as balance sheets.

Dickinson also pointed to policy risk. With the government seeking to increase labour market participation, retail should be part of the solution. Yet proposed changes under the Employment Rights Bill, particularly around Guaranteed Hours, could further limit retailers’ ability to offer flexible, local and part-time work. The challenge, she argued, will be ensuring implementation protects employees without unintentionally shrinking employment opportunities further.

Brexit’s long shadow

While automation, rising costs and store closures all play a role, Brexit continues to cast a long shadow over retail labour. European workers once formed a reliable backbone of the sector, particularly in urban centres and logistics-heavy roles. Their departure has not been fully offset by domestic recruitment, leaving gaps that technology and efficiency gains can only partially fill.

The result is a paradox playing out in real time. Consumers are returning to stores, particularly during peak periods like Christmas, yet retailers are doing more with fewer people. That pressure shows up in shorter opening hours, leaner staffing models and increased reliance on self-checkout and digital tools. A resilient season with fragile foundations

None of this negates the resilience visible on the high street. Consumer demand, while cautious, is holding up. But the data suggests that retail’s apparent recovery is being carried on slimmer shoulders.

As festive trading peaks, the question for 2026 is not simply whether shoppers will keep coming back, but whether the sector can rebuild the workforce that once made growth sustainable. Without addressing labour shortages, flexibility and migration realities, crowded stores may become harder, and costlier, to run, no matter how strong the seasonal footfall looks from the outside.

Retail does not function on demand alone. It runs on people.