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Average weekly earnings in the food and accommodation sector fell 4% to £518.01 in Q2 2024, according to the latest ONS figures, which RSM said has brought some “much needed” respite for operators.This is down from £539.30 in Q1 2024, which marked the highest quarter on record.
Vacancies in the sector were also on a downward trend at 100,000 in the three months to July 2024, after plateauing around 108,000 at the beginning of the year.
RSM said the cooling of the market could ease pressure on wage increases and “give some control back to operators”.
Saxon Moseley, head of leisure and hospitality at RSM UK, said: “After a big spike in wages in the leisure and hospitality sector to the highest quarter on record during Q1 2024, the dip in Q2 provides much needed respite for the industry.
“Operators have had to grapple with stark rises in wages since the pandemic, not to mention various other cost increases, which have put significant pressure on margins.”
He added: “With many operators pricing in the national minimum wage increase early to attract and retain staff in a competitive market, this also meant they could avoid a further spike in wages.
“As the labour market cools and vacancies come down, this will ease pressure on wage increases – a key contributor to services inflation being stubbornly high – and give some control back to operators.”
