Lacklustre employment market highlights need for enhanced Government support

By James McAllister

- Last updated on GMT

Lacklustre employment market highlights need for enhanced Government support

Related tags Unemployment ukhospitality Coronavirus

Trade body UKHospitality has reiterated its warning that, without increased financial support from the Government, half a million hospitality jobs are at risk.

The warning follows yesterday's (13 October) labour market update, which showed that the UK rate of unemployment rate had surged to its highest level in over three years as a result of the pandemic.

According the Office for National Statistics (ONS), the unemployment rate grew to 4.5% in the three months to August, compared with 4.1% in the previous quarter.

Meanwhile, redundancies rose to their highest level since 2009.

“The feeble nature of the employment market is worrying in and of itself, but it masks a much larger worry for the country," said Kate Nicholls, UKHospitality chief executive.

“Furlough support is about to end and we are moving onto a Job Support Scheme that will not work for many of our businesses.

"Our sector is being forced to operate under crippling restrictions, so to pay staff for more than hours worked is an unachievable ask for many venues. Unless support is forthcoming, the outlook is only going to get bleaker.

“We are now on the brink of widespread job losses. Half a million jobs in the hospitality sector are on the verge of being lost.

"We need much more wide-ranging support for businesses struggling to operate amidst stifling restrictions. Otherwise, the next labour market update is going to look significantly worse.”

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