Following the commencement of the third nationwide lockdown, the latest figures from Fourth, the leading global software provider for the hospitality sector, reveal the devastating impact COVID-19 continues to have on hospitality jobs.

The latest set of figures indicate that the workforce has shrunk by more than a quarter, compared to the same period last year; however, December saw the fewest job leavers since May, indicating that the continuation of the furlough scheme is helping to protect and preserve a portion of jobs in the marketplace.

The study reveals:
• There were 660,000 sector job losses over the course of the year
• There was a 28% drop in overall staff headcount compared to December 2019
• The hospitality workforce shrunk by 3.5% in December, compared to 4% in November
• The number of hours worked across the sector was 63% lower compared to December 2019
• Sector recruitment continues to stagnate, dropping by 43% compared to August-October 2020 levels

Fourth’s data, which has been aggregated from analysis of over 700 companies across the restaurant, pub, bar and QSR sectors, reveals that there were a further 8,591 workers who lost their jobs over the course of December, bringing the total number of sector job losses to roughly 660,000 for the year.

The data also reveals that the workforce shrunk by 28% in December, compared to the same month in 2019. This can be broken down by sector, where pubs experienced the least negative impact with a year-on-year drop in labour of 22%. This is followed by QSRs with a drop of 30%, and the restaurant sector with a 31% drop. The most impacted sector, again, was hotels, where there was a 33% reduction in labour compared to last year.

Overall, this is the smallest decline in job losses since May, suggesting that the government’s commitment to extending the furlough scheme until April is protecting some sector jobs, as it is intended to. Despite this, sector recruitment remains at a standstill, with the number of new starters in December (4,736) dropping by 43% compared to the period from August to October.

The data indicates that the number of hours worked across the sector dropped by almost two thirds (63%) in December, against the same month the previous year. Despite this significant year-on-year decline, it is still 49% greater than the number of hours worked in November, signifying how the transition from the second national lockdown into the revised tiered system enabled operators to briefly capitalise, where possible, on festive trading.

Sebastien Sepierre, Managing Director – EMEA, Fourth, said, “As we enter a new year, hospitality businesses would typically be reflecting on and celebrating a roaring festive trading period. But due to the pandemic, operators continued to suffer very difficult and challenging times in December, when many businesses were shut or running with severe restrictions, and are now faced with another lengthy period of little or no revenue.

“The fact that the number of sector job leavers remained low into December, compared to the spring and summer, is encouraging, as it proves the continued positive impact of the government re-committing to the furlough scheme. It is critical that this kind of top-level financial support remains in place for the sector, including an extension to the business rates and VAT cuts.

“We anticipate a tough period ahead but, with the vaccine rollout gathering momentum, the end could soon be in sight. It’s important that hospitality businesses are ready for the lifting of restrictions, whenever that may be, and we look forward to supporting our customers and partners back onto their feet.”

(source: Fourth, image: pexels)