Hospitality sector comes under further pressure as wages rise to record high
Today’s ONS labour market figures show average weekly earnings in the accommodation and food services industry reached a record high of £357.05 in August 2025, up from £346.52 the previous month, and up 6.4% year-on-year.
Payrolled employees in the sector also rose from 2,085,155 in August 2025 to 2,111,295 in September 2025, while food and accommodation vacancies fell slightly from 78,000 to 74,000 in the same period.
Saxon Moseley, partner and head of leisure and hospitality at RSM UK, comments: “The steep rise in hospitality wages to a record high will come as a big concern to the sector, particularly following a prolonged period of subdued sales. 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.
“Payrolled employees in the hospitality industry rose for the first time since April 2025 and is only the second increase since March 2024. 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 the Autumn Budget.
“After bearing the brunt of this year’s tax rises, the sector is calling out to the government for bold, meaningful support measures in the budget. 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.”