The Office for National Statistics reports that the hospitality sector has lost 84,000 jobs since the Budget, accounting for nearly half of all job losses in the economy during this period.
The hospitality sector has experienced significant job losses since the recent Budget, according to data released by the Office for National Statistics (ONS). The sector has seen a reduction of 84,000 jobs, representing 45% of all job losses in the economy since the Budget announcement. This represents a 13,000-job loss increase in just one month.
The data highlights the hospitality sector as the hardest hit by job reductions, with the changes to employer National Insurance Contributions (NICs) cited as a contributing factor. The impact has been particularly pronounced on entry-level positions within the sector.
UKHospitality, an industry body, has called for government intervention to address the situation. The organization has urged the government to consider extending existing NIC exemptions to include young people and individuals transitioning from welfare to work. This, they argue, could help mitigate further job losses and support employment growth within the sector.
Additionally, UKHospitality has advocated for lower business rates and a VAT reduction on hospitality services as measures to stimulate investment and revive high streets. The organization emphasizes the sector’s potential to contribute to the government’s growth and employment objectives if provided with a conducive operational environment.
The upcoming Budget is seen as a critical opportunity for the government to address these issues and implement measures that could reverse the trend of job losses in the hospitality sector.
