Hospitality wages spike after months of deflation

The average hourly pay of workers over 25 in the UK
hospitality industry rose to £8.38 in January, following a period
of decline.

This is according to the latest statistics from Fourth, a global
software provider for the leisure and hospitality industries.

Wages fell significantly from £8.55 in June to £8.18 in
November, before plateauing at £8.16 in December and rising to
£8.38 in January.

The trend marks the first time wages have decreased for such a
prolonged period since Fourth started tracking the metric in

Since then, the hourly pay of workers has been steadily rising
ahead of the annual incremental increases, the latest of which will
increase the hourly rate for over 25s to £8.21 in April 2019.

The statistics, from Fourth Analytics data on the hourly pay of
thousands of hospitality workers from the restaurant, QSR and pub
sectors, show that pubs and restaurants were primarily driving the
wage deflation.

During the period between June and December, the average hourly
rates of workers in the pub sector decreased by 3.5%, while the
restaurant sector experienced a 4.5% decrease.  

The data also reveals that the hourly wages of front of house
(FOH) workers fell from £8.21 in June, to £7.68 in November.
Those working in back of house (BOH) experienced a 4% decrease in
hourly wages, falling to £8.53 over the same period. 

Commenting on the figures, Mike Shipley, analytics & insight
solutions director at Fourth, said: “The hospitality industry has
experienced an unprecedented period of labour inflation over recent
years, with a combination of factors, including a shrinking pool of
workers, particularly in back of house roles, along with the fight
to attract and retain the best employees, significantly driving up
the average hourly wage.

“During the proceeding months, the average hourly wage has
been steadily falling and it now aligns with figures reported
during March 2018. Since we started tracking the average hourly
rate, the actual rate has always been tracking significantly ahead
of the incremental legislative changes to the NLW rate. For the
first time, the current hourly rate is broadly in line with the new
rate due to come into force this April, so it will be interesting
to see how the actual figure moves between now and then.”

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Hospitality wages spike after months of deflation
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Source: FS – All-Hotels-Blogs
Hospitality wages spike after months of deflation