Since changes to employer National Insurance Contributions (NICs) were introduced in the 2024 Budget, hospitality businesses have faced £3.4bn in additional annual costs, leading to 84,000 job losses.
“This is the time when hospitality businesses would be frantically hiring staff for the busy summer months,” said Allen Simpson, chief executive of UKHospitality.
“Hiring this year has fallen off dramatically. Unless the government acts, we could well be seeing the death of the great British summer job.”
Neil Carberry, chief executive of the REC, added: “A drop of over 22,000 job postings is not just a staffing gap, it’s a red flag for the wider economy.
“We cannot keep loading new costs onto employers if we want vibrant high streets and strong local economies.”
A government spokesperson said: “We are determined to leave no young person behind as we drive up growth and opportunity in every corner of the country.
“Through our Plan for Change we are transforming Jobcentres, testing new ways of delivering targeted youth employment support and giving every young person the opportunity to earn or learn through our Youth Guarantee [a commitment for young people aged 18 to 21 in England to have access to further learning, help to find a job, or an apprenticeship].”