Hospitality sector records another slight fall in staff numbers
Monthly payroll figures from the Central Statistics Office showed the overall monthly employee index fell slightly by 0.2% in July but, in sectoral terms, hospitality reported a 0.8% decline in staff.
Ireland maintained record high employment levels in July but the number of staff working in the hospitality sector declined marginally during its busiest period in the year.
Monthly payroll figures from the Central Statistics Office (CSO) showed the overall monthly employee index fell slightly by 0.2% in July but, in sectoral terms, hospitality reported a 0.8% decline in staff.
The drop follows a 1% decline in staff numbers recorded in June as the sector continues to navigate cost pressures which has led to many pulling down shutters for the final time.
“Closures have been occurring throughout the summer because footfall is stagnant at best and down in some parts of the country, while costs have risen exponentially,” said Restaurants Association of Ireland chief executive Adrian Cummins.
The CSO figures were published after State-body for tourism Fáilte Ireland released a report which found the vast majority of restaurant operators saw fewer customers this summer compared to last year while most respondents also said their profitability has decreases year-on-year.
Representative groups, including the RAI, have ramped up lobbying pressure to secure a reduction in the hospitality Vat rate in the upcoming budget, particularly for food-focused businesses.
The Government has long argued that the cost of reducing Vat from 13.5% to 9% would be costly for the taxpayer in the long-run.
The cost of implementing a 9% rate during the pandemic, down from 13.5%, reached more than €1bn alone.
However, economist Jim Power estimated in a report released earlier this year that the average restaurant closure results in a loss of €1.36m to the State and a direct loss of around 22 jobs.
