When the war for talent becomes a bloodbath - Ed’s letter

The war for talent - where we compete for team members with industries that have better pay and conditions  - has been worsening since the pandemic and the latest job figures from the Office for National Statistics confirmed that we’re nearing the ‘will the last person working in hospitality please turn out the lights’ stage.

The ONS reported that the hospitality sector has lost 84,000 jobs since the Budget, accounting for nearly half of all job losses in the economy during this period. This represents a 13,000-job loss increase in just one month.

The data highlights the hospitality sector as the hardest hit by job reductions, with the changes to employer National Insurance Contributions cited as a contributing factor. The impact has been particularly pronounced on entry-level positions within the sector.

Kate Nicholls, chair, UKHospitality, said: “We have seen time and time again that our sector is extremely capable of meeting the government’s growth and employment objectives, if given the optimal operational environment.”

A survey undertaken in May by UKHospitality, the British Institute of Innkeeping, the British Beer & Pub Association and Hospitality Ulster reported that one third of hospitality businesses were operating at a loss. This represented an 11 percentage point increase on the last quarter.

The government is being asked to consider extending existing NIC exemptions to include young people and individuals transitioning from welfare to work as well as a reversal of lower business rates and a VAT reduction on hospitality services.

The chances of this? Limited. The coffers are bare. We can queue up behind health and education for more money and try not to think too hard about the rumours that VAT is going to go up at the next Budget while we’re there. With climate change affecting food prices and the random-tariff-generation programme in full swing in the US, external help is not coming our way.

The headlines are bad, but there is an opportunity for the sector to help the government out with some better ones. And yes, no matter which way you vote, you may be in no hurry to help out the leaders of our socialist utopia, but now is not the time to be talking about donkeys.

Our sector offers more than entry-level jobs, or summer jobs, or playing Sudoku while monitoring the revolving door jobs. It can offer careers and remains one of the few areas which can take you from entry level to CEO. It is also one of the few industries where, yes, AI can work with you as a partner, but it’s not going to take your job. It’s a chance for Keir Starmer to stand up and announce jobs - real jobs - in areas which need them. And once he sees that political potential, will the rest follow?