Retailers have warned that tax, wages and changes to workers' rights are hurting hiring as the number of young people not earning or learning tops 1m for the first time in over a decade.

Helen Dickinson, the chief executive of the British Retail Consortium (BRC), has warned that 'Britain cannot afford to lose a generation of young talent and ambition' but the High Street is under pressure to axe roles.

Maintaining roles in the sector, including part time and seasonal shop roles that have traditionally been the first foot in the door of the working world for teenagers and young adults, is becoming 'increasingly difficult'.

Her remarks came the same day Alan Milburn said that the number of young people classified as not in education, employment or training (NEET) was 'probably the most significant challenge facing our country'.

Around 1.01m 16 to 24-year-olds in the UK fell into this category between January and March this year, according to the Office for National Statistics.