Unemployment rose 5% in the first quarter of the year, and hospitality has seen some of the largest falls in payroll numbers, according to the ONS (Office for National Statistics).
The rise is being blamed on government policy, with rising costs meaning fewer job opportunities, particularly for young workers.
“The past two Budgets have inflicted more than £5 billion of additional costs onto hospitality businesses, forcing them to cut jobs, slash hours, and scrap plans for new roles,” said UKHospitality chair Kate Nicholls.
“Today’s figures are clear evidence that hospitality has been disproportionately affected, as the ONS itself calls out, and we warned would be the case.
“There are dark clouds on the horizon still, as provisional data for April projects a further 100,000 job losses across the economy. This is clearly reflective of businesses responding to mammoth April cost increases, across wages and business rates.”
She added: “If the government wants to grow the economy and get people back into work, it needs hospitality’s help. Rather than taxing jobs out of the sector, it should reduce our weighty cost burden to allow businesses to create jobs.
“That should start with a cut to VAT for hospitality and proper reform of business rates for the entire sector.”
