The forecasted labor costs in the UK’s accommodation and food services sector show consistent growth from 2024 to 2028, increasing from £48.29 Billion to £53.04 Billion. In 2023, the sector's labor costs were £47.13 Billion, indicating an upward trajectory. The year-on-year percentage increase starts at roughly 2.5% from 2024 to 2025 and remains steady around 2.6% in the subsequent years. The 5-year Compound Annual Growth Rate (CAGR) is approximately 2.6%, suggesting a moderate and steady rise in labor costs.
Future trends to watch for include the impact of inflationary pressures, potential shifts in minimum wage legislation, and post-Brexit labor market adjustments. Additionally, technological advancements and automation may influence labor demand in the sector.
