They were warned, but they clearly didn’t listen. April employment figures from the labour market – the first month of accounting for NIC and minimum wage increases – will alarm the government. After all the token comments that none of its MPs came into politics to make people poorer – well it seems 109,000 people are exactly that. Payroll employees according to the latest ONS figures show a significant fall – and notably in the hospitality sector where preparations for the summer season are being finalised and employment numbers would normally be on the up.

More than 100,000 jobs have been lost from the UK labour market since April – many from the hospitality sector – following recent increases to employer National Insurance contributions.

Figures released this week by the Office for National Statistics show a fall of 109,000 payrolled employees in May 2025 compared to the previous month. The decline surpasses even the most pessimistic forecasts from economic institutions, including Deutsche Bank and the Office for Budget Responsibility.

Kate Nicholls, CEO of UKHospitality, described the situation as “damaging and worse-than-expected,” warning that the NICs increase is disproportionately affecting core employment sectors like hospitality.

“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,” she said.“We were clear at the time that the changes to NICs were a tax on jobs, and so it is sadly proving.”

Nicholls urged the Government to urgently reconsider the tax policy, adding: “Sectors like hospitality… are among the hardest hit by these tax increases. These shocking figures should make it abundantly clear… they should be reviewed and reversed urgently.”