The number of barstaff employed in the UK has fallen by nearly a quarter in the last year as recession has taken a firm grip on the country.
The State of the Nation 2009 report, by the hospitality, leisure, tourism and travel sector skills council People1st, takes a detailed looked at how the sector has fared over the past five years.
The report shows how rising costs in employment, fuel, utility bills and alcohol duty have hit the industry hard with the overall workforce across the sector dropping 19 per cent between December 2007 and 2008. In that time the number of barstaff jobs has been slashed by 23 per cent.
However it does not all make for gloomy reading with the sector predicted to grow by 10 per cent by 2017.
The report also indicates that pubs and bars that are able to diversify their businesses will be in the strongest position to survive.
Brian Wisdom, chief executive of People1st, said: "The pub and bar industry has undoubtedly suffered over the last few years but is in many respects ahead of the game in terms of recognising the need to diversify and focus on marketing their offer to attract customers.
"But at the end of the day, people are the lifeline of any business which ultimately depends on the skills and competencies of its staff. Therefore, it makes good business sense to attract and develop highly skilled staff."
The report also shows that more than half (51 per cent) of businesses plan to cut back on staff training during the recession.
"This is a false economy," said Wisdom. "Companies that grow their staff and provide good value for money without compromising on quality, should be in pole position when the economy picks up."
However, over the last five years training standards have improved, with 64 per cent of workers having at least a level two NVQ qualification, compared to 60 per cent in 2003.