Summary
More than half of the recent job losses in the UK have happened in the hospitality sector, according to industry leaders. Factors like higher business costs and taxes are causing pubs, restaurants, and hotels to reduce hiring, cut staff, or even close down. The government has provided some relief measures, but concerns about costs and job losses continue.
Key Facts
- The hospitality sector includes restaurants, bars, pubs, and hotels.
- Around 89,000 jobs were lost in the hospitality sector since October last year.
- Hospitality makes up 53% of total job losses in the UK since the last budget.
- Increased costs include higher minimum wages and National Insurance contributions.
- High inflation and rising costs for ingredients and energy are impacting businesses.
- The government has extended business rates relief and cut licensing costs for outdoor dining.
- Job vacancies across nearly all industries have decreased, affecting hiring in hospitality and retail.
- The Bank of England's inflation target is below the current inflation rate of 3.8%.
