Data from the Office for National Statistics (ONS) has revealed that the hospitality sector employed 8,784 fewer people in December 2025 compared to November 2025.
According to the ONS, this amounts to 20,014 fewer employees than in September 2025.
This data covers a time when the industry would normally be increasing staff numbers in preparation for the festive season.
Trade body UK Hospitality (UKH) said that these figures reinforce the enormity of the challenge to hospitality, which includes changes to employer national insurance contributions (NICs) and other increased employment costs.
Several Budgets in succession have increased the cost and tax burden on the hospitality sector, and businesses expect a further blow in April, which is when businesses rates are set to rise by a significant amount.
The trade body has called for urgent action to avert these upcoming increases to rates, asking the government to increase the discount for hospitality properties to the maximum 20p permitted in law.
Earlier this month, the government said that it would offer business rates relief to pubs (as Harpers reported) and has not ruled out extending relief to other areas of the hospitality sector.
UKH said that business rates require a “hospitality-wide solution”.
Allen Simpson the chief executive of UKH, added: “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 £3.4 billion 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.”
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