Hospitality could be added to the 'short of occupation list' - what does this mean for the industry?

Ministers are understood to be potentially adding the hospitality sector to the short of occupation list to help with the sectors staffing issues.

Labour market data published by the office for National Statistics (ONS) last month revealed that vacancy rates across hospitality are still 72% higher than they were pre-pandemic.

According to reports ministers have asked the Migration Advisory Committee (MAC) for advice on whether the hospitality, (along with construction and the retail industry) should be on the list of sectors where there is a shortage of workers, helping them to recruit from overseas.

Earlier this month UKHospitality revealed that a record 2.6 million people are now employed in accommodation and foodservice, with the sector creating one in five new jobs – despite the staff shortages!

The trade body said there was significant job creation taking place in the sector now and insisted there was “the potential to go even further”.

UKHospitality chief executive, Kate Nicholls, said:

“The ability of hospitality businesses to create more than 20% of new jobs in the past year, in the face of extraordinary cost pressures, is testament to its resilience and ability to battle against the odds.

“Employing a record number of people is something we should all be proud of, especially when those figures don’t include the hundreds of thousands employed in broader contract catering, leisure and visitor attractions.

“If we can do this now, just think what we can do in calmer economic times. We can be the engine behind significant job creation and economic growth, offering everyone opportunities to enter the workplace or further their career.”

Jeremy Hunt ordered the workforce review amid concerns the economy is being held back by shortages of workers that have emerged since the pandemic and Brexit. - It is believed the review could add more roles to the shortage occupation list within weeks.