Britain’s biggest supermarket chains have joined more than 80 retail leaders in urging Prime Minister Keir Starmer to take urgent action on youth unemployment, warning that rising costs and new employment regulations risk shutting young people out of the workforce.

The bosses of Tesco, Sainsbury’s, Morrisons and Asda are among the signatories of a letter sent to Downing Street by the British Retail Consortium, which argued that retail remains one of the most important entry points into employment for young people. Retailers warned that the sector’s ability to offer first jobs and career opportunities is under increasing pressure, describing the “ladder of opportunity” for young workers as “wobbling”.

“Retail has always been where any young person can start with few qualifications, limited experience and build a lasting career,” the letter states. “

Many of us started on the shop floor, and it remains central to how our businesses grow and compete.”

The intervention comes at a time when youth unemployment has reached its highest level in more than a decade and job vacancies have fallen sharply across the UK economy.

Supermarkets are among the country’s largest private-sector employers, with grocery stores providing thousands of entry-level roles each year in stores, distribution centres and management training programmes.

Industry leaders say these opportunities are becoming harder to create as employment costs continue to rise.

The BRC said it is now “more expensive than ever” to recruit young workers and warned that changes introduced through the Employment Rights Act are making workforce management more complicated.

Helen Dickinson, chief executive of the BRC, said ministers must avoid policies that increase the cost of creating jobs.

“The message from retail is clear: if government is serious about tackling youth unemployment, it cannot keep making it more expensive to create jobs,” she said.

Retailers have also stepped up criticism of Labour’s increase in employer National Insurance contributions and proposals to reform age-based wage structures, arguing the measures could discourage entry-level hiring and limit career progression.

The letter follows a recent report by former Health Secretary Alan Milburn, which warned that as many as 1.25 million people aged 16 to 24 could be out of education, employment or training by the end of the decade.

A government spokesperson said: “We are already working in partnership with businesses to tackle youth unemployment and create 50,000 more opportunities for young people as part of our £2.5bn youth employment support package.

“From this month, we’re rolling out £3,000 payments, covering wages for six months for those out of work long-term, and cutting hiring costs for under‑21s and apprentices.”