Hospitality sector loses almost 9,000 jobs in December

The hospitality sector employed 8,784 fewer people in December 2025 compared with the previous month, according to the Office for National Statistics.

The data also reveals the industry employed 20,014 fewer people in December 2025 than in September 2025. The decline occurred during the festive season, a period when businesses typically increase staffing levels.

Industry figures suggest the losses follow changes to employer National Insurance contributions and other rising employment costs. Sector leaders warned of further pressure in April when business rates are scheduled to increase.

As such, UKHospitality has called for government intervention to prevent these increases. The trade body is requesting an increase to the business rates discount for hospitality properties to the maximum 20p permitted by law.

Chief executive of UKHospitality Allen Simpson said: “Hospitality is being hit by costs at every angle and it is the cumulative effect of this growing tax burden that is resulting in the number of people employed in hospitality continuing to fall. It was less than a year ago when our local hospitality venues were landed with £3.4bn in additional annual cost, and now they face their business rates increasing too.

“We saw significant job losses before the Budget, and we’re seeing that continue to accelerate. Hospitality has so much potential to drive growth, create new jobs and help people back into work, but it’s being held back by the highest tax burden in the economy. Looming business rates increases are only making things worse and the Government needs to act urgently to bring forward a hospitality-wide solution that averts those hikes. If it doesn’t, we will only see job losses and business closures accelerate.”