Survey: Migrant Workers May Be the First to Go as the UK Hospitality Industry Prepares for Mass Job Cuts
The hospitality industry in the UK is in danger of losing thousands of jobs because of rising wages, business rates, and energy expenses. Migrant workers are likely to be hurt the hardest.
A survey by major industry groups shows that almost two-thirds of hospitality businesses expect to lay off workers. More than half have already cancelled plans to invest, and many are cutting back on their hours. About 15% of venues say they might have to close down completely.
The effect might be quite bad for an industry that depends on migrant workers. Hospitality has always been a place where new arrivals and overseas workers can start their careers. Because of this, job cuts are likely to hit migrants who are already having trouble finding work the hardest.
The pressure comes from rising prices caused by changes in government policies. Just raising the National Living Wage and the National Minimum Wage is costing employers an extra £1.4 billion a year. At the same time, business rates are going up a lot, especially for hotels and restaurants, and energy prices keep going up.
Leaders in the industry say that businesses are being forced to make “heartbreaking decisions” as costs rise. Many businesses are already employing fewer, lowering hours, or stopping hiring altogether. These are the first steps that hurt the most vulnerable workers, like migrants in lower-paying or less secure jobs.
People are already feeling the effects. Since late 2024, the sector has lost a lot of jobs, which has made unemployment worse for younger and lower-income individuals. A lot of migrant workers work in the hotel industry, and they are more likely to lose their jobs as firms want to cut expenses quickly.
Business organisations are asking the government to do something. They want lower VAT rates, changes to business rates, and lower taxes for employers. They say that if nothing is done, job losses will happen faster and more businesses will close in the sector.
For a lot of migrant workers, hospitality has been a key means to get into the UK job market. That path is quickly closing as costs rise and jobs depart.