The economy as a whole has shed 100,000 jobs since the National Insurance contribution increases in April.

A total of 124,376 employees have exited the accommodation and food services sector in the UK in the 12 months to May 2025, according to the latest figures from the Office of National Statistics (ONS).

This represents a 5.6% fall from the same month in the previous year, and the 11^th consecutive month of losses in hospitality staff. Accommodation and food services also represented the sector with the largest reduction in payrolled employees.

ONS’s latest Labour Market Overview also showed that in the overall UK economy, payrolled employees decreased by an estimated 109,000 between April and May 2025, following the hike to employer National Insurance contributions.

This loss of jobs exceeds predictions from both the Office for Budget Responsibility (OBR) and a major bank.

The OBR originally forecast the changes to employer NI contributions would cost 50,000 jobs, before revising its prediction to say the impact would be higher. Deutsche Bank predicted it would cost 100,000 jobs.

UKHospitality repeated its call for an urgent review and reversal of the increases, with Kate Nicholls, now chair of the industry body, saying: “Losing more than 100,000 jobs across the economy in a month goes far beyond the worst-case scenario predicted by the government’s own fiscal watchdog, major banks, and countless business groups.

“We were clear at the time that the changes to NI contributions were a tax on jobs, and so it is sadly proving.

“Sectors like hospitality are the very sectors you need to create jobs in every part of the UK and for people of all ages, education and background, but hospitality and those working part-time are among the hardest hit by these tax increases.”

Hospitality closures have risen sharply in 2025, with the latest research from Hospitality Market Monitor from CGA by NIQ and AlixPartners showing that between January and March, the total number of operating sites fell 0.3% – the equivalent of 20 closures a week – to 98,866 venues.

High profile names announcing closures of late include Tom Kerridge’s Butcher’s Tap & Grill in Chelsea, London, Paul Foster’s Salt in Stratford-upon-Avon and Michelin-starred Hjem in Hexham, Northumberland.

Major chains have also experienced difficulties, with Chick ‘n’ Sours shutting its final sites in London last month, the Lewis Hamilton-backed Neat Burger exiting the UK in April and Bistrot Pierre being sold out of pre-pack administration in March, prompting 158 job losses.