Almost 9,000 jobs were lost in the hospitality sector following the Budget in November 2025, according to newly released labour market data.

Figures from the Office for National Statistics show that the sector employed 8,784 fewer people in December 2025 compared with November. Employment was also down by 20,014 roles compared with September 2025.

The decline comes during a period when hospitality businesses would typically be increasing staff numbers in preparation for the festive season.

Industry body UKHospitality said the figures highlight ongoing challenges facing the sector, citing rising employment costs, including changes to employer National Insurance Contributions and other cost pressures. The organisation also noted that businesses are preparing for further cost increases in April, when business rates are scheduled to rise.

UKHospitality has called for measures to limit the impact of business rates increases, including an increase to the existing business rates discount for hospitality properties, within the limits permitted under current legislation.

Commenting on the figures, UKHospitality chief executive Allen Simpson said the combination of rising costs is contributing to continued reductions in employment across the sector. He noted that hospitality businesses have faced significant additional costs over the past year and warned that further increases could lead to continued job losses and business closures.