Ireland's Food-Led Hospitality Sector Loses 20,000 Jobs as 9% VAT Cut Nears

1 articles · Updated · Gript · May 25

Q1 2026 labour data showed Ireland’s food-led hospitality sector shed 20,000 jobs over 12 months, with employment falling to 116,000 from 136,000 — a 14.7% drop.
The Restaurants Association of Ireland blamed unsustainable labour and operating cost increases, saying many businesses have cut trading hours or stopped opening on quieter midweek days.
Across the wider hospitality sector, employment fell to 169,600 from 186,500, underscoring pressure beyond restaurants even before accommodation is stripped out.
The industry group said the government’s decision to restore the 9% VAT rate from July 1 should provide breathing space, but warned the latest figures show the support cannot come soon enough.
The job losses are especially worrying for rural towns and tourism-dependent communities, where hospitality remains one of Ireland’s largest indigenous employers.

With 20,000 jobs gone, is a VAT cut a cure for Ireland's hospitality crisis or just a temporary fix?

As Ireland slashes restaurant taxes, is it creating an unwinnable price war for Northern Ireland's hospitality sector?