100,000 jobs lost since April cost increases

The Labour Market Overview, published by the Office for National Statistics on 10 June, estimates that the number of payrolled employees in the UK in May decreased by 109,000 compared to the previous month. 

This loss of jobs exceeds predictions from both the Office for Budget Responsibility (OBR) and a major bank. 

The OBR originally predicted the changes to employer National Insurance Contributions (NICs) would cost 50,000 jobs, before revising its prediction to say the impact would be higher. Deutsche Bank predicted it would cost 100,000 jobs. 

The damaging and worse-than-expected impact of the NICs changes on employment, felt most intensely by foundational sectors like hospitality, necessitates an urgent review and reversal of the increases. 

'Far beyond the worst-case scenario'

Kate Nicholls, chair of UKHospitality, comments: "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.

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

"At a time when we are all striving to grow the economy and help people back into work, the changes to NICs are acting as an anchor to the government's ambitions."

Industries like hospitality are critical to creating jobs for people of all ages and backgrounds across the UK, adds Nicholls, and yet they are among the hardest hit by the tax increases.

"These shocking figures should make it abundantly clear to the government that the changes to employer NICs are inflicting more harm than good, and they should be reviewed and reversed urgently," she warns. 

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