Calls for 'urgent support from government' as ONS figures highlight staffing crisis

UKHospitality has called for “urgent support from the government” as low unemployment rates continue to exacerbate the staffing crisis.

The latest figures from the Office for National Statistics (ONS) continue to show unemployment levels at a record low, while the total number of job vacancies in May to July 2022 was 1.274 million, with hospitality accounting for 174,000.

Kate Nicholls, chief executive officer of UKHospitality, said: “Staff shortages have been at a record high in the hospitality industry for some time, causing thousands of operators to cut trading hours or close for whole days, at a cost of £21bn in lost revenue.

“At the same time, operating costs are soaring across the board for businesses already carrying heavy debt levels from the pandemic. The industry needs urgent support from the government if it is to survive and generate jobs and growth. In short, the recovery of both the sector and the UK economy are being threatened by the workforce crisis.”

The competition for employees was reflected in statistics showing total pay growth in the wholesaling, retailing, hotels and restaurants sector had the highest growth rate across the economy at 7.7%.

But today’s ONS report also showed that despite salaries increasing inflation meant that in “real terms” average pay levels fell 3% between April and June, a record decline.

Figures also revealed that compared to last year, July 2022 saw a 15.3% increase in payrolled employees working for accommodation and foodservice activities in London, whereas Northern Ireland saw a 3.4% increase.

For the three months ending June 2022, the highest employment rate estimate in the UK was recorded in the east of England (78.4%), while Northern Ireland saw the lowest at (69.7%).

The north east had the highest unemployment rate (5.1%) and Scotland’s unemployment rate was at 3.2%, a joint record low for the region.

All regions in the UK saw a decrease in unemployment rate compared to the same period last year, with the East Midlands reporting the largest decrease of 1.9 percentage points.