According to the trade body’s analysis of the latest labour market figures published by the Office for National Statistics (ONS), 84,000 jobs have been lost in the sector since the announcement of the changes to employer NICs in last autumn’s Budget.
Once again, ONS data shows accommodation and food service activities recorded the largest decrease in payrolled employees of any sector in the year to July.
A total of 108,286 employees left the sector between July 2024 and July 2025, a fall of 4.9%.
According to the ONS, 2,082,062 payrolled employees were working in the accommodation and food service sector in July 2025.
“Today’s employment figures show that hospitality and retail – the sectors most heavily impacted by changes to employer NICs – continue to bear the brunt of job losses,” says Kate Nicholls, chair of UKHospitality.
The Labour Market Overview, also published by the ONS, estimates that the number of payrolled employees decreased by 8,000 in July 2025 compared to the month before.
Nicholls notes that biggest fall in employment is among younger workers seeking their first roles in entry level or holiday jobs.
“[This] group is now losing out on opportunities to gain vital experience and essential skills,” she continues.
“Hospitality is a key provider of these valuable roles, yet since the announcement of the changes to employer NICs – which are set to cost the sector £3.4bn per year – 84,000 jobs have been lost in the sector.”
As well as jobs, vacancies across the hospitality sector are also continuing to fall, dropping by 7,000 or 8.9% in the three months to July.
“Hospitality businesses are being taxed out by rising costs and policy decisions that make it harder for businesses to hire and invest,” Nicholls adds.
“If the Government is serious about supporting growth and tackling youth unemployment, it must urgently rethink the pressure it’s placing on hospitality businesses.”