‘Positive milestone’ for sector as hospitality vacancies fall below 100,000

The latest figures from the Office for National Statistics (ONS) show that there are 98,000 job vacancies in food service and accommodation.

However, despite the fall, vacancies remain 5,000 higher than pre-pandemic levels of 93,000.

In reaction, UKHospitality chief executive Kate Nicholls has urged the Government to introduce business-friendly recruitment measures at the Budget and cautioned against excessive minimum wage increases.

“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 says.

“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.”

While the number of hospitality vacancies has fallen, the ONS data also shows that wages across the sector have risen 4% in the last year.

“Businesses are also nervously waiting for the Low Pay Commission’s (LPC) 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,” Nicholls continues.

“These figures 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.”