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

Job vacancies in food service and accommodation have fallen below 100,000 for the first time since the pandemic, falling to 98,000, in what UKH has called a “positive milestone” for the sector. 

However, vacancies still remain 5,000 higher than pre-pandemic levels of 93,000, the ONS’ labour market overview has revealed. 

ONS figures also indicate that average earnings are 4% higher than a year ago, which UKH boss Kate Nicholls said “should give pause to the Low Pay Commission moving too far and too fast with above-inflation wage increases.”

In light of this, UKH has urged the government to introduce business-friendly recruitment measures at the Budget, while also cautioning against “excessive” minimum wage increases. 

Kate Nicholls, CEO of UKH, said: “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.

“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.”

She added: “Making the tax burden for hospitality businesses more sustainable is essential in 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.”

While Nicholls believes vacancies falling below 100,000 is a positive milestone for the sector, she has expressed concern over businesses having to shoulder increases of up 40% in some age bands over the past three years.