RESEARCH | Staff Reporter, UK

Hospitality wages rise following months of deflation

Wages in the QSR sector were constant.

Hospitality wages have spiked after months of deflation, statistics from cloud-based cost control solutions company Fourth.

According to them, the average hourly pay of workers over 25 in the UK significantly fell from £8.55 in June to £8.18 in November, before plateauing at £8.16 in December and rising to £8.38 in January.

Since they have started tracking the metric in 2015, 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 people over 25’s to £8.21 in April 2019.

Data shows that pubs and restaurants were primarily driving the wage deflation. From to June and December 2018, the average hourly rates of workers in the pub sector decreased by 3.5%, whilst the restaurant sector experienced a 4.5% decrease. Wages in the QSR sector, where 61% of workers are from outside the UK, was relatively constant at £9.18.

“This data shows that wage inflation climaxed in June, due to a perfect cocktail of hot weather and an unexpected World Cup run for England, placing great pressure on the need for additional workers in the hospitality industry. This basic increase in the demand for labour from a limited pool of workers drove up hourly wages," Mike Shipley, Analytics & Insight Solutions Director at Fourth, explained.

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