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

Hospitality vacancies have fallen below 100,000 for the first time since the outbreak of the Covid-19 pandemic, but remain above 2019 levels.

 

Data from the Office for National Statistics showed there are 98,000 vacancies in the food service and accommodation sectors, above pre-pandemic levels of 93,000.

 

The data also shown that wages in the sector have increased by 4% in the last year.

 

The news has been welcomed by UKHospitality, which has called on the government to support further recruitment.

 

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

 

“As a sector we’re continuing to drive down vacancies, but the government can make that easier in the budget. 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.”

 

The autumn budget will be presented by chancellor Rachel Reeves on 30 October 2024 and UKHospitality has also advised against a sharp increase in the minimum wage.

 

Nicholls added: “Businesses are also nervously waiting for the Low Pay Commission’s recommendation of next year’s wage rates, particularly as significant increases over recent years means wage costs now represent at least a third of business costs.

 

“Today’s figures showing that average earnings were 4% higher than a year ago should give pause to the LPC moving too far and too fast with above-inflation wage increases.

 

“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, something the LPC is considering itself.

 

“Making the tax burden for hospitality businesses more sustainable is essential at this budget, which is why we’re urging the chancellor to introduce a lower, permanent and universal hospitality multiplier to avoid a business rates cliff edge that would pile more costs onto an already struggling sector.”