Hospitality Sector Sees Job Vacancies Dip Post-Pandemic

The hospitality sector in the UK has reached a notable milestone, with job vacancies dropping below 100,000 for the first time since the onset of the COVID-19 pandemic. According to recent data released by the Office for National Statistics (ONS), there are currently 98,000 open positions in the food service and accommodation industries. This figure represents a significant reduction in vacancies but remains 5,000 higher than pre-pandemic levels.

The announcement has been met with cautious optimism by UKHospitality, one of the sector's leading trade bodies. Chief Executive Kate Nicholls described the development as a "positive milestone," emphasising the need for further action to ensure sustainable progress.

"Although it is encouraging to see vacancies fall below 100,000, we must acknowledge that they remain thousands higher than before the pandemic," said Nicholls. "The sector continues to make strides in reducing vacancies, but the government has a role to play in easing this burden, particularly in the upcoming Budget."

Nicholls called on the government to support recruitment initiatives, such as enhanced back-to-work schemes and reforms to the Apprenticeship Levy. She stressed that these measures would be crucial in helping the sector recruit workers and address the broader issue of economic inactivity.

Despite the reduction in vacancies, the ONS data also revealed that wages across the hospitality sector have increased by 4% over the past year. While workers may welcome this growth, businesses are concerned about rising labour costs.

"Businesses are anxiously awaiting the Low Pay Commission's recommendations for next year's wage rates," Nicholls noted. "In recent years, wage costs have surged, with some age groups seeing increases of up to 40% over three years. For many businesses, wages now account for at least a third of their overall costs. Any future wage increases must be balanced, and the sector's ability to absorb these costs must be considered without harming youth employment."

Nicholls also highlighted the ongoing challenges posed by the current tax system, calling for urgent reforms to business rates. She urged the Chancellor to introduce a lower, permanent, universal hospitality multiplier to prevent a looming "business rates cliff edge." Such a move, she argued, would be crucial in alleviating financial pressures on an already struggling sector.

As the hospitality industry continues its post-pandemic recovery, the reduction in job vacancies offers a glimmer of hope. However, with rising wage costs and the need for government support, the path forward remains uncertain. Stakeholders will watch closely as the Budget unfolds, hoping for measures to address the sector's ongoing challenges while fostering sustainable growth.