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Hospitality sector hit by rising wage demands and supply costs

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Demand for UK hospitality workers soars by 46% 

Employers across the UK are struggling to find staff – with the highest number of job vacancies in London, according to a new survey. 

 Research by Indeed Flex, the online staffing platform for temporary work, reveals the biggest jump in demand for warehouse workers was in the North East, seeing a 106% increase in job adverts towards the end of 2022, while Scotland saw a 61% increase.  

With soaring supply costs and rising wage demands amid the cost-of-living crisis, businesses in the hospitality sector are feeling the pinch.   

  • The number of online job adverts for hospitality workers in the North East has more than doubled since 2019. 
  • The UK has seen 46% more job adverts for hospitality staff since the pandemic. 
  • London had the highest total number of job vacancies, with 10,460 positions advertised online in December 2022, an increase of 26% compared to pre-pandemic levels.  

It was hoped that hospitality job roles might be added to the Government’s shortage occupation list, making it easier for businesses to recruit from abroad. However, the Migration Advisory Committee only added construction roles. Recent research from Indeed Flex found 58% of businesses will be turning to temporary workers to support their permanent teams this year. A quarter of HR professionals, whose business already uses temporary workers, expect to increase the use of temps this year. 

Novo Constare, CEO and Co-founder of Indeed Flex, said: “During the pandemic, hospitality was hit the hardest. Many businesses were forced to close for long periods and thousands of people were furloughed or made redundant. The uncertainty in the hospitality sector made many workers seek employment. Unfortunately, not all staff returned. On top of rising costs and stretched budgets, it’s a difficult position for companies to be in and many businesses have come to see temporary staff as a vital resource.”

 For more information, visit  www.indeedflex.co.uk  

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