Source link : https://london-news.net/hospitality-sector-faces-potential-job-loss-surge-as-young-workers-bear-the-brunt-of-budget-impacts/
The hospitality industry may potentially see the departure of an additional 100,000 employees due to the recent Autumn Budget, as indicated by its trade association.
UKHospitality warns that this threat arises from increases in the minimum wage, the proposal of a tourist tax, and significant changes to business rates.
Allen Simpson, the organization’s chief executive, expresses particular concern for youth employment, noting that the sector has already lost around 100,000 jobs since the October 2024 Budget, including numerous entry-level positions.
In response, the government stated, “We are providing support to pubs, restaurants, and cafés through a £4.3 billion package,” asserting that adjustments made mean many “typical independent pubs” are saving approximately £4,800 annually.
Young individuals aged 16 to 24 represent 10% of the total workforce in the UK, yet they constitute nearly half of the workforce in various hospitality positions.
Mr. Simpson points out, “The cost of hiring individuals at the beginning of their careers is escalating.”
Starting in April, the wage for workers over 21 will increase by 50p to £12.71, while those aged 18-20 will receive an 85p boost to £10.85. Workers under 18 and apprentices will see a rise of 45p, bringing their hourly pay to £8.
He further notes that “as it becomes increasingly challenging for employers to recruit staff,” opportunities for young people to acquire essential skills, such as collaboration,…
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Publish date : 2025-12-04 17:41:00
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