UKHospitality has urged the Government to introduce business-friendly recruitment measures at the Budget and cautioned against excessive minimum wage increases, as new data from the Office for National Statistics showed that there were 98,000 vacancies in food service and accommodation, falling below 100,000 for the first time since the pandemic.
Vacancies remain 5,000 higher than pre-pandemic levels of 93,000.
Its labour market overview also showed that annual growth in total earnings was 4%.
Kate Nicholls, Chief Executive of UKHospitality, 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.
“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.”
