Nine in ten workers in hospitality and tourism quit the sector altogether when they switch jobs, as the hiring “churn” drives costs and dampens the industry’s productivity.
As many as 87 per cent of hospitality and tourism workers who quit jobs end up leaving the industry for solid, even as the exit rate stands at 82 per cent for retail staff, according to jobs site Indeed.
The cost of frequent rehiring adds to mounting pressures faced by the hospitality and retail industries, including minimum wage increases and employment rights reforms, which businesses have said could threaten the flexible roles they rely on.
The hospitality and tourism sector – where 2.9 per cent of workers leave their jobs every month – typically offers lower pay and gives young Brits their first paid employment.
The jobs with the highest exit rate in retail are store bosses (96 per cent) and bookkeepers (95 per cent), while party entertainers (97 per cent) and hotel assistants (95 per cent) are most likely to quit the hospitality and tourism sector.
Young workers rely on flexible work
The high exit rate in hospitality and retail could suggest the sector serves its purpose as a gateway into employment for many, but Indeed said this metric often signals weak demand and limited advancement opportunities.
Jack Kennedy, senior economist at told City AM: “The government equalising the minimum wage rates of pay is a particular concern given the timing, at a time where those businesses are already facing quite significant cost pressures.”
The retail industry has shed 250,000 jobs in the last five years and the cost of hiring an entry-level worker has risen by ten per cent in the last year.
The boss of clothing retailer Monsoon said last week Labour’s employment rights reforms risk blocking the flexible work that gives many young Brits their first jobs.
Other executives at leading retailers, including Greggs and John Lewis, have expressed concern over the UK’s rate of youth unemployment, which is nearing 1m.
Kennedy also said the rise of AI could wreak havoc on the industries which typically have a steady workforce, like software development, marketing and accounting.
He said: “The labour market is likely to be significantly reshaped over [the] coming years and we’re going to witness new jobs created as well as disruption within existing occupations.”
