Half of UK job losses in hospitality, say bosses

An increase to the minimum wage, which came in this April, means that bosses have had to pay workers more in an environment where other costs, such as ingredients and energy bills, are also rising.

Employers are also now paying higher National Insurance contributions, meaning it costs more to employ someone.

These higher business costs coincide with the rising cost of living, which means people are going out to eat less to save on costs, lowering sales and profits for leisure industries.

Prices in the UK rose by 3.8% in the year to July, driven mainly by a jump in the price of air fares and food.

It means inflation is at its highest level since January 2024 and still far above the Bank of England's target of 2%, according to the ONS.

In its last set of jobs data, looking at the period between May and July, the ONS said job openings had continued to fall, with fewer people on the payroll.

"The number of employees on payroll has now fallen in 10 of the last 12 months, with these falls concentrated in hospitality and retail, said Liz McKeown, director of economic statistics at the ONS.

Job openings fell by 5.8% to 718,000 between May and July across nearly all industries.

The ONS said there was evidence that some firms may not be recruiting new workers or replacing people who have left.