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Hospitality vacancies fall below 100,000 for the first time since the pandemic

Published:  12 September, 2024

The number of job vacancies in the UK’s hospitality sector has dropped below 100,000 for the first time since the pandemic, according to new data from the Office for National Statistics (ONS). There are currently 98,000 vacancies in food service and accommodation, marking a reduction on recent years. However, the number remains 5,000 higher than pre-pandemic levels of 93,000.

Annual growth in total earnings for the sector has increased by 4%, highlighting ongoing wage pressures.

Kate Nicholls, chief executive of UKHospitality, described the drop in vacancies as a positive step but acknowledged the challenges the sector still faces.

“Vacancies finally falling below 100,000 is a positive milestone for the sector, but the overall number remains thousands higher than pre-pandemic levels,” she said.

Nicholls also called for government action in the upcoming budget, including support for back-to-work schemes and a reform of the Apprenticeship Levy. “Supporting enhanced back-to-work schemes and delivering on the manifesto commitment to reform the Apprenticeship Levy will help the sector recruit and reduce economic inactivity,” she added.

The sector continues to face rising wage costs, with businesses nervously awaiting the Low Pay Commission’s (LPC) recommendations on future wage rates. “Businesses have had to shoulder increases of up to 40% in some age bands over the past three years, and we must ensure there is no detrimental impact on youth employment as a result of these increases,” Nicholls warned.

One major obstacle to hiring within the hospitality industry is the ongoing impact of Brexit. Historically, the sector has relied heavily on workers from overseas, particularly from EU countries, to fill vacancies. Since the UK departed from the EU, however, the flow of foreign workers into the industry has significantly decreased. The introduction of new immigration policies and restrictions has made it harder for businesses to recruit from overseas, contributing to the persistent labour shortages the industry is now grappling with.

Another key challenge is the public’s perception of hospitality as a desirable career path. Surveys suggest that only one in five UK adults considers hospitality an appealing industry to work in. This low level of interest, particularly among young people, has worsened the sector’s recruitment crisis. Although the industry offers rapid career progression and a variety of rewarding opportunities, it often struggles to attract talent due to long hours, relatively low wages in entry-level positions, and the demanding nature of many roles.





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