Hospitality “hit hardest by job losses”

The hospitality industry has emerged as the most severely affected sector in terms of job losses since the Government’s Budget, according to the latest data from the Office for National Statistics.

The ONS figures reveal that the hospitality sector job losses accounted for 45% of all job losses since the Budget. This translates to an increase of 13,000 job losses in just one month, bringing the total to 84,000 roles lost since the Chancellor’s announcement of higher employer National Insurance contributions and other cost increases.

The data also shows a continued decline in hospitality vacancies, with numbers falling from 82,000 to 79,000 between April and June 2025, marking a 19% year-on-year drop. Industry experts have cautioned that operators are reaching their limits in absorbing costs, leading to reductions in headcount that could impact service quality and customer experience.

UKHospitality Chair Kate Nicholls attributed the downturn to policy decisions implemented in the previous Budget, particularly changes to employer National Insurance Contributions (NICs). She described these adjustments as socially regressive and disproportionately damaging to entry-level roles. Nicholls warned that without corrective measures, the sector risks further losses at a time when it should be expanding the jobs market.

Ahead of the upcoming Budget, UKHospitality has called on the Government to reform NICs by broadening existing exemptions to include young people and individuals transitioning from welfare to work. The organisation also urged action on reducing business rates and applying a VAT cut for hospitality, measures it says are essential for reviving high streets and stimulating investment. Nicholls emphasised that hospitality has consistently demonstrated its ability to support national growth and employment when operating conditions are favourable, stressing that urgent intervention is needed to avoid taxing the sector out of viability.