Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

CoronavirusHospitalityLatest NewsJob creation and lossesLabour market

Hospitality job losses will be ‘far higher’ than expected

by Rob Moss 7 Oct 2020
by Rob Moss 7 Oct 2020 Photo: Han Yan Jon Super/Xinhua News Agency/PA Images
Photo: Han Yan Jon Super/Xinhua News Agency/PA Images

Far more pub, bar and restaurant workers than previously thought are likely to lose their jobs by the end of the year as local lockdowns, the 10pm curfew, working from home and plummeting confidence among consumers take their toll.

In a Commons Treasury Committee evidence hearing yesterday, MPs were warned more than 900,000 people in the hospitality sector remained on full-time furlough and a further 400,000 on part-time furlough.

You will have insolvent business, businesses going into administration, and therefore that engine of growth for re-employing people will be lost for good” – Kate Nicholls, UKHospitality

Kate Nicholls, chief executive of UKHospitality, told MPs: “There is a large chunk of the hospitality sector that is still in stasis, cannot reopen. One in five premises are restricted by legislation from reopening – large parts of the night-time economy, events and functions in our hotels and conference centres.”

She said that second wave of Covid restrictions are not hitting all sections of the economy equally and that sector-specific support was needed.

Nicholls said: “We fear that as a result, unless there are amendments for those sectors… you won’t avoid the cliff edge in October.”

Speaking of the workers still on furlough she added: “We are trying our best to bring as many of those workers back to retain that vital link between employer and employee by bring people back for short-time work [but the Job Support Scheme] unfortunately doesn’t provide enough support for those sectors of the economy that are subject to legislative restriction.”

Hospitality in crisis

‘Work from home if you can’ – government tightens restrictions

Pret A Manger to cut a third of staff

Major hotel group may make 60% of staff redundant

Until the end of the month, the government’s furlough scheme covers 60% of wages but from 1 November the Job Support Scheme, which is only available if staff can work at least one third of their normal hours, covers just 22% – the employer has to fund at least 55% of pay.

“You will have insolvent business, businesses going into administration, and therefore that engine of growth for re-employing people will be lost for good.”

UKHospitality had previously forecast 560,000 people in the industry would lose their jobs by the end of 2020 but Nicholls said the number will be much more after new restrictions were introduced in the last two weeks.

“We are doing that data again but we anticipate it will be far higher due to local restrictions, the national constraints on events, working from home and the curfew,” she told MPs.

Nicholls singled out the curfew as having a devastating impact. “Businesses are feeling the cumulative impact of all the restrictions placed on them, but they have really suffered since the introduction of the curfew. The curfew has wiped away revenue from businesses that were only just clinging on. For many, it has tipped them into financial unviability.

“We have no staggered ending like we have seen in Ireland and Wales. Other European countries have a later curfew point, with last orders at 11 and closure at 12, which eases the pressure.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“The regulatory impact on businesses needs to be considered, particularly when so low a number of outbreaks are linked to hospitality. We urge the government to rethink the curfew so that it can deliver the public health objective without damaging businesses and risking further job losses. We also need an immediate and comprehensive package of support to keep businesses alive and prevent redundancies on a large scale.”

HR roles in hospitality and leisure on Personnel Today

Browse more HR roles in hospitality and leisure

Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

previous post
Tesco to create 16,000 new jobs as online sales soar
next post
More than half of workers looking for new role

You may also like

Restaurant tips should be included in holiday pay

21 May 2025

Fewer workers would comply with a return-to-office mandate

21 May 2025

Redefining leadership: From competence to inclusion

21 May 2025

Pay awards in real terms could fall for...

21 May 2025

Ryanair demands flight attendants pay back salary increase

21 May 2025

Consultation launched after Supreme Court ‘sex’ ruling

20 May 2025

Uncertainty over law hampering legal use of medical...

20 May 2025

Black security manager awarded £360k after decade of...

20 May 2025

Employers ‘worryingly’ ignorant about stress risk assessments

20 May 2025

UK and EU agree to collaborate on ‘youth...

19 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+