By: Denis Sheehan, Publisher, H&C News
The record rise in job vacancies continues to drive unemployment down as in the three months to June the rate dropped to 4.7%. The latest data from the Office for National Statistics for July then showed the number of job vacancies open passed 1 million for the first time on record.
Amidst the numbers, hospitality remains unable to fully reopen despite government’s so called ‘freedom day’ as sufficient numbers of people remain unavailable, or unwilling to return to work.
The ONS figures show the proportion of the working population out of work is still higher than before the pandemic. Rocketing demand for people to return or enter the hospitality job market remains high largely due to the exodus of people post Brexit creating a gap of circa 180,000. Many people during furlough have also found employment in other industries, and now seem reluctant to return. Reasons for this transition include better pay, working hours and life/work balance, and uncertainty of businesses remaining open.
To tempt more people into hospitality higher pay and benefit packages have emerged as the UK saw wages jump by 7.4%. Many people looking for work are now anticipating joining bonuses as many employers have adopted these in the frenzy to lure people to fill roles enabling them to open and trade.
The reality check amongst all of the data is that the current hospitality job market is seriously out of kilter. With demand so outstripping supply, employers are desperate.
Desperate employers are being forced to offer unsustainable salary and benefit packages to meet equally desperate demand from consumers, fuelled by the current boom in staycations. This will drive temporary wage inflation until the summer season elapses. Demand for people will then fade and redundancies will follow.
This pattern will then further fuel hospitality’s reputation as a temporary job not a career option.
The government’s obstinacy in refusing to allow visas for non UK nationals to balance the job market equation for hospitality and other industries like haulage is not only damaging those industries, but the wider economy and its ability to recover.
After all the damage endured throughout the pandemic to date, hospitality deserves more from government.
News from the hospitality and catering industry is also being featured extensively in our Facebook and twitter social media accounts with the opportunity to engage with others in hospitality and share your views.
Hospitality & Catering News: Record job vacancies underline government’s obstinacy to balance the job market. – 17 August 2021 – Record job vacancies underline government’s obstinacy to balance the job market.
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