July sees sharp drop in permanent hospitality staff

The hospitality sector continues to suffer as the rate of decline in permanent staff appointments gathered pace in July, but the rate of contraction in temporary/contract billings continues to ease.

The Report on Jobs by consultancy KPMG found that although the drop in permanent appointments for July was faster than in the previous four months it was still weaker than the severe reductions at the start of 2009.

Bernard Brown at KPMG commented on the latest results: “As the summer holidays begin in earnest, this month’s figures show a sharper drop in permanent jobs, as well as temporary jobs continuing to fall.

“Employers may be taking advantage of this traditionally quiet time of year to re-assess their recruitment needs.”

The report also highlights the continuing skills shortage in the hospitality sector with catering being the worst hit. Permanent staff skills in short supply include chefs and senior catering management, while there is a shortage of catering skills in the temp market.

The rate of contraction for wages has also eased. Permanent salaries decreased in July at the weakest rate for nine months and hourly rates fell at the slowest pace since October last year.

Hospitality labour market demand hit hard by the credit crunch >>

Hospitality urged to use Government schemes to boost jobs >>

Hospitality must not cut back on training to survive recession >>

By Janie Stamford

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