The latest labour market data from the Office for National Statistics shows the sector employed 8,784 fewer people in December 2025 compared with November.
The figures also reveal that between September and December last year, hospitality employment fell by 20,014 people – a period when businesses would typically be increasing staffing levels ahead of the festive season.
UKHospitality says the data underlines the ongoing impact of rising employment costs, including increases to national insurance contributions (NICs), alongside successive Budgets that have significantly increased the cost and tax burden on the sector. A further blow is expected in April, when business rates are set to rise sharply.
“Hospitality is being hit by costs at every angle, and it is the cumulative impact of this growing tax burden that is driving continued job losses,” says Allen Simpson, chief executive of UKHospitality.
“It was less than a year ago that local hospitality venues were landed with £3.4bn in additional annual costs, and now they are facing further increases through business rates.
“We saw significant job losses even before the Budget, and that trend is now accelerating.
“Hospitality has huge potential to drive growth, create jobs and help people back into work, but it is being held back by the highest tax burden of any sector in the economy.”
Earlier this month, UKHospitality warned that 2,076 venues could be forced to close in 2026. The trade body is now renewing calls for urgent government action to avert further increases to business rates through a hospitality-wide solution.
It is urging the government to increase the business rates discount for hospitality properties to the maximum 20p permitted in law.
Simpson adds: “Looming business rates increases are only making things worse, and the government must act urgently to bring forward a hospitality-wide solution that averts these hikes. Without intervention, job losses and business closures will only continue to accelerate.”