Hospitality Vacancies Fall But Still Higher Than Pre-Pandemic Levels

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The hospitality sector employs around 7% of the UK workforce , with overseas staff historically making up more than 40 per cent of the hospitality workforce

Losses In International Workforce

Since the end of 2019 UK hospitality businesses have lost almost 200,000 international workers

EU workers were the biggest fall, in August 2022 there were an estimated 172,000 EU citizens working in the hospitality sector, down around 41 per cent compared to a pre-pandemic total of nearly 293 000

To help combat the ongoing staffing crisis many hospitality operators have increased wages and promoted generous incentives with some operators targeting older workers and offering on the job training to people without CVs

Other operators have increased “staff perks” offered more flexible shifts, and helped with general cost of living expenses

Challenging Recruitment Landscape

Paul Newman, par tner and head of leisure and hospitality at RSM UK, said: ‘Monthly food and accommodation ser vices vacancies remained flat at 146,000 in Januar y 2023, after reaching an all-time high in May/June last year

However, vacancies are nearly 65% higher than the 89,000 in Januar y 2020, reinforcing the challenging recruitment landscape hospitality businesses are facing This continues to negatively impact the ability of businesses to maximise sales with reduced opening days, restrictive trading hours and simplified menus all resulting from staff shor tages

‘Earnings in the sector dropped again by 10% in Q4 2022 from the previous quar ter and increased 3% year-on-year With headline CPI inflation in Januar y at 10 3%, adjusting for rising prices means wages are continuing to fall in real terms This has led to demands for higher pay rises but for some businesses, par ticularly small, independent operators, raising wages beyond National Minimum Wage rates when energ y costs and food inflation are at record highs will only lead to more pubs and restaurants going out of business

‘The number of people employed in the sector increased slightly to 1 69 million in Q4 2022 but with insolvencies reaching a decade high last year, these numbers are expected to contract as more companies close their doors in the face of ever spiraling costs

Wages in the sector have been steadily rising for a long time , reflecting the effor ts of businesses to both attract staff and keep up with inflation

There is no quick fix to solve this recruitment crisis but we do need to see greater investment if the sector is going to access the people it needs to fill essential roles Only then will businesses be able to trade to their full potential and begin to deliver the economic growth to create even more job oppor tunities ’

Staff Shortages A Major Challenge

Steve Sweetlove , pay and people par tner at RSM UK, said: ‘Despite year-on-year wage rises in the sector being well above the UK average , labour shor tages continue to a major challenge for food and accommodation industries ”

As we emerge from the winter, operators should star t to really focus on their wider people strategies Where possible , rather than get bogged down by day-to-day issues, operators need to keep their eyes on the horizon and future-proof their workforce Key questions that employers need to ask themselves are why would employees want a career in hospitality, why would they want to join us and why would they want to stay with us? For many looking at the non-remuneration aspects such as progression will be as essential as the hourly rate of pay ’

UKHospitality Chief Executive Kate Nicholls said: “The labour figures published by the ONS indicate that hospitality businesses are continuing to face an incredibly challenging recruitment landscape , with vacancy rates still 72% higher than pre-pandemic levels

This chimes with our Budget submission that we sent to the Chancellor earlier this month, where we call for Apprenticeship Levy reform, to give employers more control over the deliver y and funding of training which would, ultimately, allow many of the economically inactive to get back into work, at almost no cost to the Government “Recruitment will, undoubtedly, continue to be a key challenge for the industr y to grapple with, so government inter vention ranging from apprenticeship reform investment in skills and implementing shor t-term immigration solutions, will ultimately make the challenge easier for businesses to manage

“It is only through measures such as these that the sector will be able to truly turn the corner, filling essential roles to help deliver growth and create even more job oppor tunities ”

SURVEY REVEALS STAFFING AT 'CRITICAL LEVELS'

Last summer a sur vey by industr y organisations UKHospitality, the British Institute of Innkeeping, and the British Beer and Pub Association revealed that staff shor tages in the hospitality industr y reached “critical levels,” causing nearly half (45%) of operators to cut trading hours or capacity in order to cope , costing the industr y £21bn in lost revenue and causing an estimated £5bn loss in tax for the Exchequer

The sur vey also revealed that staff shor tages are forcing one in three businesses in the sector to close one or more days a week