The latest estimations from the Office for National Statistics (ONS), published yesterday (Tuesday 14 October), showed the number of payrolled employees in the sector rose from 2,085,155 in August 2025 to 2,111,295 in September 2025.
Vacancies in the food and accommodation industry also fell slightly from 78,000 to 74,000 in the same period, according to ONS.
RSM UK partner and head of leisure and hospitality Saxon Moseley said: “Payrolled employees in the hospitality industry rose for the first time since April 2025 and is only the second increase since March 2024.
Subdued sales
“With vacancies coming down again after a surprise rise the previous month, this suggests operators have hit the bottom in terms of cutting staff numbers and are cautiously hiring again. Businesses are also likely to apply the brakes on recruitment as they wait to see what announcements come out of this year’s autumn Budget.”
Moseley added the sector was calling out for bold and meaningful support in the upcoming fiscal address: “Operators will also be hoping the Budget gives consumers a spring in their step, so they feel confident enough to part ways with their money, particularly in the lead up to the important Christmas season.”
Average weekly earnings in the accommodation and food services sector also reached a record high of £357.05, up from £346.52 the previous month, and up 6.4% year-on-year.
The head of leisure and hospitality cautioned the steep rises in wages was a “big concern”, particularly as sales had been “subdued” for some time.
Substantial measures
He continued: “This puts more pressure on margins, with every £1 increase in wages also leading to additional employers’ NIC, resulting in a double whammy on operators’ costs.”
Meanwhile, UKHospitality (UKH) chair Kate Nicholls told The Morning Advertiser (The MA) the data reinforced the “significant pressure” hospitality businesses remain under.
She added: “The decisions taken at the last Budget continue to have a huge impact on operators. It’s critical the Government takes action to lower business rates, fix NICs and lower VAT at the Budget on 26 November.
“Substantial measures to lower the sector’s tax burden is the only way to begin to reverse the damage already done and give venues some much-needed financial headroom.”
