Migrant Workers May Be Hit First as UK Hospitality Sector Braces for Mass Job Cuts: Survey

LONDON April 4: Thousands of jobs in the UK hospitality sector are at risk as soaring wage bills, rising business rates, and energy costs push businesses to the brink—with migrant workers expected to be among the hardest hit.

A survey by leading industry bodies reveals that nearly two-thirds of hospitality businesses plan to cut staff, while over half have already scrapped investment plans and many are reducing opening hours. Around 15% of venues warn they may close entirely.

For a sector heavily reliant on migrant labour, the impact could be severe. Hospitality has long provided entry-level roles for overseas workers and new arrivals, meaning job cuts are likely to disproportionately affect migrants already facing limited employment options.

The pressure comes from a surge in costs driven by government policy changes. Increases to the National Living Wage and National Minimum Wage alone are adding £1.4 billion a year to employers’ bills. At the same time, business rates are rising sharply, particularly for hotels and restaurants, while energy prices continue to climb.

Industry leaders warn that businesses are being forced into “heartbreaking decisions” as costs spiral. Many operators are already scaling back hiring, cutting hours, or freezing recruitment—moves that often hit the most vulnerable workers first, including migrants in lower-paid or less secure roles.

The consequences are already being felt. The sector has lost significant numbers of jobs since late 2024, worsening unemployment among younger and lower-income groups. Migrant workers, who make up a sizeable share of the hospitality workforce, are at heightened risk of redundancy as employers look to reduce costs quickly.

Business groups are urging the government to act, calling for VAT cuts, reform of business rates, and relief on employer taxes. Without intervention, they warn, job losses will accelerate and closures will spread across the sector.

For many migrant workers, hospitality has been a crucial gateway into the UK labour market. Now, as costs surge and jobs disappear, that pathway is rapidly narrowing.