Hospitality and Retail Hit Hardest by Job Losses, Warn Industry Leaders

Hospitality and retail are continuing to suffer the greatest job losses, according to new figures from the Office for National Statistics (ONS). Job vacancies fell by 5.8% to 718,000 between May and July, with declines seen across nearly all industries.

Average wage growth held steady at 5%, while the unemployment rate remained at 4.7%. However, the number of people on payrolls dropped by 8,000 between June and July.

Kate Nicholls, chair of UKHospitality, said the biggest decline in employment is among young people seeking entry-level or holiday jobs. She warned that changes to employer National Insurance Contributions (NICs) – costing the sector an extra £3.4bn annually – have already led to 84,000 job losses in hospitality.

“Hospitals businesses are being taxed out by rising costs and policy decisions that make it harder to hire and invest,” she said. “If the government is serious about tackling youth unemployment, it must urgently rethink the pressure it’s placing on our sector.”

Emma McClarkin, chief executive of the British Beer and Pub Association, added that rising NICs and wage costs mean brewers and pubs may be forced to make “tough decisions” to survive.