Official figures show a decline of 2000 jobs in Northern Ireland's hospitality sector over 2025, reducing employment from 57,000 to 55,000. This 3.5% drop contrasts with a 1.3% rise in total jobs across the economy.

The losses concentrated in the final quarter of 2025, a peak period for the industry. Jobs had hit a record high over the summer before falling later in the year.

Colin Neill of Hospitality Ulster attributes the trend to rising costs, including higher employers' National Insurance contributions introduced across the UK in April 2025. He states that high taxation levels prevent some businesses from operating profitably on certain days, leading to reduced hours rather than closures.

Neill notes businesses have cut lunch services and limited weekly openings, resulting in fewer staff needs. He adds that casual labour arrangements offer valued flexibility to some employees.

Neil Moore from the Unite trade union identifies pressures from energy costs, business rates, National Insurance changes, and broader economic factors. He says responses often involve cutting labour costs through reduced hours, tighter staffing, wage squeezes, and more insecure contracts.

Moore highlights underemployment, where workers receive fewer hours than desired. He reports staff leaving roles quickly due to unstable schedules, forcing some to take second jobs or struggle financially.