Hospitality sector could shed 100,000 more jobs, trade body warns

"It's "entirely plausible" the hospitality sector could lose a further 100,000 workers as a result of the Autumn Budget, according to its trade body. UKHospitality claims the risk stems from minimum wage rises, the introduction of a tourist tax and an overhaul of business rates. Its chief executive Allen Simpson says he is particularly worried about the impact on youth employment, as the sector has already shed an estimated 100,000 jobs since the Budget of October 2024, "including many early career opportunities"."

"Workers aged 16 to 24 make up 10% of the country's total workforce, but account for about half of the workers in some hospitality roles. "Employing people at the start of their career is increasingly expensive," Mr Simpson says. From April, the hourly rate for over-21s will rise by 50p to 12.71, with workers aged 18-20 seeing an 85p rise to 10.85, and under-18s and apprentices getting 45p more, at 8 an hour."

"The latest ONS figures show there are 702,000 people aged 16 to 24 who are unemployed, 60,000 more than the previous year. Among them is Saif Miah, 23, from west London, who says he has applied for hospitality jobs every day since summer with no luck. "If you're lucky you'll get a response saying you've not got the job. Other times you don't even get a response. It feels very demeaning because you're in a cycle and it really demotivates you perpetually.""

The hospitality sector could lose a further 100,000 workers following minimum wage rises, a proposed tourist tax and a business rates overhaul. Wage increases from April raise over-21 hourly pay by 50p to £12.71; 18–20-year-olds by 85p to £10.85; under-18s and apprentices by 45p to £8. The sector has already shed an estimated 100,000 jobs since October 2024, reducing early-career opportunities. Workers aged 16–24 make up 10% of the national workforce but about half of some hospitality roles, heightening youth vulnerability. ONS figures show 702,000 people aged 16–24 unemployed, 60,000 more than a year earlier. A government £4.3bn package aims to protect pubs, restaurants and cafes.

Read at www.bbc.com