Wix CEO, David Wood, has asked the government to make hiring young people easier. He pointed to the rising hiring costs over the past two years, stating that hiring an employee is now twice as expensive as it used to be.
Need for Hiring Young People
Wood stated in his remarks: "Easing the hiring of young people can be very beneficial, and we must also maintain the ability to manage a flexible workforce. 30 percent of our colleagues in stores are aged 16 to 24, and 45 percent of them work part-time to better manage their lives."
These remarks come as Wix announced that group revenue for the six months ending in June rose by 2.1 percent to £865.3 million. The company has predicted that it will open four to five new stores and renovate 12 stores by the end of the year.
Economic Challenges and Their Impacts
Wix also referred to the cost-of-living pressures affecting its customers. Rising mortgage rates and energy costs have led Wix customers to be slightly older and wealthier than the UK average, which has helped the company's sales.
The company also announced that its profit before tax for the six months reached £24.6 million, a 1.7 percent increase compared to last year. Wix expects to meet market expectations with a 10 percent increase in profit before tax this year.
These remarks come as youth unemployment in the 16 to 24 age group has reached a concerning level. Wood's statements align with criticisms from other executives, such as James Watt, co-founder of BrewDog, who has called on the government to reduce hiring costs.
Executives have also criticized the increase in the minimum wage over the past two years, which has raised hiring costs. In this context, the British Retail Consortium (BRC) estimates that recent policies have cost the retail industry £6.5 billion and 115,000 jobs.
