Rachel Reeves‘ budget has been blamed for killing the British summer holiday job with hospitality postings falling by more than 20,000 in a year.
The drastic reduction comes despite a booming tourism industry which saw visitors in England spending £48.4 billion on day visits in 2024, a six per cent rise from the previous year.
Job postings for temporary hospitality work is down 25% year-on-year, with 22,369 fewer unique postings for jobs this year compared to last, according to data from the Recruitment and Employment Confederation (REC).
In 2024 there were 88,414 hospitality jobs on offer, but that fell markedly to 66,045 in a single year.
Meanwhile, the number of tourism jobs have also been largely reduced.
This year there have been just 15,650 unique unique job postings, a 14 per cent drop from the 18,118 last year.
The fall in employment opportunities will largely impact students and teenagers looking for their first jobs and will threaten the temporary job market as schools and universities break up for the summer, according to UKHospitality, a trade body for the industry.
It will put at the risk the skills provided by having hospitality as a first job, they claim.
Chancellor Rachel Reeves’ budget has been blamed for killing the British summer holiday job
Job postings for temporary hospitality work is down 25% year-on-year, with 22,369 fewer unique postings for jobs this year
The reduction in hiring comes after Reeves hiked the National Insurance rates for employers
Allen Simpson, Chief Executive of UKHospitality, said: ‘This is the time when hospitality businesses would be frantically hiring staff for the busy summer months, when the sector expects to welcome families to their hotels, and serve millions of people with ice cream on the beach, fish and chips on the pier, and cold pints in the pub garden.
‘I know from personal experience how important hospitality summer jobs are for getting young people experience of work, however hiring this year has fallen off dramatically, with 22,000 fewer jobs available compared to last year.
‘It is sadly reflective of the impact we have seen from increased costs over the past nine months – less employment, less opportunity and less growth in the economy.
The reduction in hiring comes after Labour chancellor Rachel Reeves hiked the National Insurance rates for employers.
The October budget also lowered the threshold for when employers must start paying the tax, as she looked to raise around £20 billion.
It has resulted in £3.4bn in additional annual cost for hospitality businesses, with 84,000 job losses, UKHospitality estimates.
Mr Simpson added: ‘Unless the Government acts, we could well be seeing the death of the great British summer job. That’s not good for the economy, for businesses, or for the people that need this flexible work during the summer.
‘We need to see action at the Budget to reverse this damage. That starts with fixing NICs, lowering business rates and cutting VAT for hospitality businesses.’
In 2024 there were 88,414 hospitality jobs on offer, but that fell markedly to 66,045 in a single year
This year there have been just 15,650 unique unique job postings, a 14 per cent drop from the 18,118 last year
Neil Carberry, REC Chief Executive, said: ‘Hospitality is one of the UK’s biggest entry points into work, but right now, we are shutting people out before they even get a foot in the door.
‘A drop of over 22,000 job postings as we reach the height of the summer season is not just a staffing gap, it is a red flag for the wider economy. It puts recruiters, hospitality businesses and customers under massive pressure to make the most of the short-lived English summer.
‘We cannot keep loading new costs onto employers if we want vibrant high streets, thriving pubs and strong local economies.
‘The government needs to deliver an Autumn Budget that supports hiring, which means no tax timebombs, a rethink on business rates and recognising hospitality as a vital engine for national growth.’
