Hospitality Sector: Employment

11. What assessment he has made of trends in employment levels in the hospitality sector.

The hospitality sector remains a major UK employer. It supported around 2.1 million jobs last year, or around 6% of total employment. Employment has grown by over 18% in the past decade, and although growth has stabilised more recently, that follows a period of strong expansion, reflecting the sector’s continued importance to local economies and youth employment. I know myself how vital the sector is for first jobs—my first job was in a café, and that opportunity gave me the skills to go on and succeed in my career. We are supporting jobs through skills investment, including new hospitality apprenticeships, incentives for SMEs to recruit young people, and sector-based work academy programmes to help people into work.

I thank the Minister for her answer and the positive news about the sector apprenticeships. Hospitality is critical in Salisbury as we move towards our 800-year celebration next year, but last summer there was a 25% drop in temporary work in the sector, and the cost of employer national insurance contributions for part-time workers in the sector—those working 15 hours—increased by 73%. I say respectfully to the Minister that I recognise that tough decisions have to be made in the Treasury; I was there for seven years, and was part of those decisions. However, this sector is under real strain, and part-time jobs for the youngest workers are not there at the moment. Something quite significant needs to change in the Government’s approach.

I thank the right hon. Member for raising the vital role that the hospitality sector plays in providing those first jobs and opportunities for people. I work closely with hospitality businesses, and I am really keen to continue to listen to them, to understand the challenges they face. I know that the right hon. Member will welcome our youth jobs grant, which was launched this week and is open for applications—that was welcomed by the chief executive of UKHospitality. We want to keep working with those businesses, and I thank them for their engagement so far on how we can continue to support them to crack on with the brilliant opportunities they provide in communities across the country.