UK retail and hospitality pay has seen 'unprecedented increase'
Pay in UK retail and hospitality firms has increased by an ‘unprecedented’ 18% in the past year, according to research.
At the same time, employment growth in the sector has fallen by just over 1%, said payroll software firm Employment Hero.
The increase in pay has happened ahead of higher national minimum wage rates from April, said the report, based on a survey of more than 400 businesses.
While wages are rising in the short term, job opportunities are becoming more limited, the study indicated.
The report said the 18% increase was unprecedented.
Kevin Fitzgerald, managing director of Employment Hero, said: ‘Our data reflects what many retail and hospitality businesses have been warning for some time.
‘While the national minimum wage increase is driving an immediate uplift in pay, it’s landing at the same time as wider employment law changes that are increasing the cost and complexity of hiring.
‘Businesses are having to make decisions now about how they structure their workforce going forward.
‘For many, that means being more cautious about hiring, particularly in roles that have traditionally relied on part-time or younger workers.
‘The risk is that what looks like a positive story on wages in the short term could translate into fewer opportunities in the months ahead. As pressure builds, we may start to see a slowdown in hiring that disproportionately impacts those trying to enter the workforce.’
source: PA
Copyright 2026 Alliance News Ltd. All Rights Reserved.