Death of the Great British summer holiday job?

The UK hospitality industry is experiencing a notable decline in temporary job postings for the summer season, with a 25% reduction compared to the same period in 2024. The Recruitment and Employment Confederation (REC) reports that there are 22,369 fewer unique job postings in the sector this year.

This decrease in job postings occurs despite a surge in domestic tourism. In 2024, spending on day visits by tourists in England increased by 6% to £48.4 billion, following a 15% rise in 2023. In April, the latest month for which data is available, UK residents made 68.6 million visits within the country, marking a 10% year-on-year increase.

The reduction in job opportunities is linked to changes in employer National Insurance Contributions (NICs), particularly the lowering of the threshold announced in the previous year’s Budget. These changes have resulted in an additional £3.4 billion annual cost for hospitality businesses. Since the announcement, the sector has lost 84,000 jobs.

The decline in temporary job postings poses a challenge for students and young people seeking summer employment, traditionally provided by the hospitality and tourism sectors. These sectors have historically offered casual and temporary work during the busy summer months, aiding in skill development and providing first-time job opportunities.

Industry leaders have expressed concern over the impact of increased costs on employment opportunities. They emphasize the need for government intervention to address the situation, suggesting measures such as revising NICs, lowering business rates, and reducing VAT for hospitality businesses.

I know from personal experience how important hospitality summer jobs are for getting young people experience of work, however hiring this year has fallen off dramatically, with 22,000 fewer jobs available compared to last year. It is sadly reflective of the impact we have seen from increased costs over the past nine months – less employment, less opportunity and less growth in the economy. Allen Simpson, Chief Executive of UKHospitality

The current trend of reduced hiring in the hospitality sector raises concerns about its potential effects on the broader economy. The decline in job postings not only creates staffing challenges for businesses but also impacts the availability of flexible work opportunities for individuals during the summer season.

As the UK approaches the height of the summer season, the hospitality industry faces pressure to adapt to the reduced workforce while accommodating the growing demand for domestic tourism. Industry representatives are calling for government action to support hiring and ensure the sector remains a vital contributor to national economic growth.