The latest employment figures from the ONS reveal that the rate of UK unemployment reached a four year high last month, with 5 percent of people out of work. UKHospitality chair Kate Nicholls described the figures as “a shocking indictment of the damage caused by last year’s Budget,” not least because hospitality has suffered the sharpest decline.
The Office for National Statistics has reported that the UK rate of unemployment hit 5 percent in the three months to October, the highest rate since February 2021 and the latest in thirteen consecutive months of job losses.
The figures mean an estimated 180,000 jobs were lost over the past year, prompting major concerns over the impact of further economic turbulence in the wake of this month’s Budget, which is expected to hit hospitality “disproportionately” hard.
“Estimates for payrolled employees in the UK fell by 117,000 (0.4 percent) between September 2024 and September 2025 and decreased by 32,000 (0.1 percent) between August 2025 and September 2025,” states the report.
“When looking at July to September 2025, the period comparable with our Labour Force Survey estimates, the number of payrolled employees fell by 109,000 (0.4 percent) over the year, and by 26,000 (0.1 percent) over the quarter. The early estimate of payrolled employees for October 2025 decreased by 180,000 (0.6 percent) on the year, and by 32,000 (0.1 percent) on the month, to 30.3 million.”
ONS’ director of economic statistics Liz McKeown observed the unemployment rate was up in the latest quarter “to a post pandemic high,” and highlighted the fact the UK is now facing a “weakening labour market.”
Responding to the ONS’ report, UKHospitality chair Kate Nicholls said the figures represented “a shocking indictment of the damage caused by last year’s Budget.”
“Hospitality has borne the brunt of these changes, with more than half of all job losses coming from our sector. If the Government wants to get more people back into work and revitalise high streets, it needs hospitality firing on all cylinders, but right now we’re being taxed out.”
LibDem Treasury spokesperson Daisy Cooper also shared her concerns, telling the BBC “everyone except Rachel Reeves seems to have woken up to the fact that forcing small businesses to pay more in tax for giving people jobs would damage job opportunities. Now the proof is staring her in the face.”
Job losses rise
Kate Nicholls said… “Hospitality has borne the brunt of these changes, with more than half of all job losses coming from our sector. If the Government wants to get more people back into work and revitalise high streets, it needs hospitality firing on all cylinders, but right now we’re being taxed out…
