Starbucks has announced plans to recruit 7,500 new baristas over the next five years. The chain employs more than 18,000 people in the UK and targets growth north of the M25. These roles will staff 500 new coffee shops expected to open by 2031. The expansion follows a global restructuring that cost $1bn and forced the closure of dozens of underperforming outlets last year. Darren King, who runs Starbucks UK, stated: "We’re deeply focused on how we can help more young people into these positions, starting by making entry-level roles as accessible as possible."
Hiring amid economic headwinds
The company set out this growth plan earlier this year after shutting dozens of underperforming outlets in Britain last year as part of a $1bn (£750m) global restructuring. This timing is stark because an official report found the number of young people not in education, employment or training, known as Neets, hit a record high above 1 million at the start of the year. Jon Holt, chief executive and UK senior partner of KPMG, reported that October saw employers pull back on hiring in the month leading up to the budget, ending a run of more positive news over recent months. Renewed geopolitical and economic uncertainty weighed on confidence, with further energy price shocks and a global bond sell-off pushing borrowing costs higher. Holt added that businesses are assessing whether budget measures provide enough stability to absorb external pressures and higher costs they face.
The labor market shows clear signs of strain beyond just youth unemployment. A monthly survey compiled by S&P Global for KPMG and the Recruitment & Employment Confederation revealed that permanent job creation fell for the first time in four months. Temporary role recruitment also dropped for the first time since March. Separately, Resolution Foundation analysis found job satisfaction among UK workers is at a record low due to a lack of flexible working and insecure jobs. With the Bank of England increasing interest rates and inflation set to continue rising, there is a risk the green shoots in the jobs market could stall. Starbucks’ decision to hire aggressively while others cut back suggests it views its northern expansion as a critical opportunity to capture talent before competitors react to the broader economic slowdown.
