Hospitality salaries rise ‘significantly’ despite COVID-19 pandemic

In the three months to September 2020, the hospitality sector’s employment represented 6.9% of total UK employment, with 2.38 million jobs in the industry. While in the previous year, the hospitality sector contributed £59.3 billion in Gross Value Added to the UK economy – making up around 3% of total UK economic output.

However, this huge industry has been the brunt of many difficult losses over the past year – having been one of the hardest hit sectors affected by the coronavirus pandemic.

Though hospitality businesses represent 3-5% of businesses in each country and region, due to the nature of transmission of the coronavirus, many business have been forced to temporarily or permanently close. Restrictions on trading have had a significant impact on business turnover,  with economic output in the sector down 92% in April 2020, compared to February 2020.

Still, despite such hardship, a new analysis by the Reed Hospitality and Leisure Salary Guide 2021 of over 6.5 million jobs posted to reed.co.uk in the past three years, found that COVID-19 had not caused a significant impact or decrease in overall salary levels.

Displaying an typical salary of £31,760 in 2020, there had been an average 4% growth in salary since the previous year. Exhibiting particularly notable increases include duty managers and head chefs. Reed has explained how this is “well above” the UK natural increase – which was 2.32%.

These figures may come as a surprise when between January-March 2020 and then July-September, the jobs in the sector fell by 6% and with many eligible jobs on furlough.

However, the sector is managing better than expected to given the difficult circumstances. Much of this is as a result of boost via the Eat Out to Help Out scheme in August, the eases on restrictions, and the business support provided through the UK government that has kept businesses afloat.

Words: Seeham Rahman