Data from the Office of National Statistics (ONS) revealed there were 98,000 empty roles, which were 5,000 higher than pre-pandemic levels of 93,000.
The statistics also showed there was a quarterly growth decline across all sectors in June to August 2024 with the hospitality industry down 17.5% compared to the same period in 2023 and a 2.1% drop against the previous quarter.
In its August update, the ONS revealed vacancies in the hospitality sector fell to 100,000 – a drop of 9,000, which was one of the largest decreases.
Positive milestone
On the latest figures, UKHospitality chief executive Kate Nicholls 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 (LPC)’s recommendation of next year’s wage rates, particularly as significant increases over recent years mean wage costs now represent at least a third of business costs.”
ONS data also revealed the annual growth in total earnings was 4%, something the UKH boss said should give pause to the LPC moving too far and fast with above-inflation wage rises.
Tax burden
Nicholls added: “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.”
The trade body reiterated calls for the Government to provide a solution in avoiding sky-rocketing business rates bills in the upcoming Budget on Wednesday 30 October.
“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," Nicholls added.
