The latest figures from the Office for National Statistic (ONS), published earlier this week, showed average weekly earnings in the accommodation and food services industry were down 1.4% from £354 in August 2025 to £349 in August 2026.
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It marked the first wage decline for hospitality in more than 30 months.
Vacancies also fell 7% year-on-year from 75,000 in the three months to September 2025 to 70,000 in the three months to September 2026.
Priced out
Commenting on the figures, RSM UK partner and head of leisure and hospitality Saxon Moseley said the sector had reached an “equilibrium” in terms of pay.
However, he warned the drop in hospitality vacancies indicated some operators were being “priced out” of hiring, particularly when it comes to younger team members.
He said: “The first annual decline in hospitality wages in nearly three years suggests we may have reached an equilibrium, providing a degree of stability and some relief to operators.
“Another fall in hospitality vacancies partly points to operators being leaner with their operations and creating efficiencies through AI, but more worryingly, it also highlights businesses are being priced out of hiring.
Bated breath
“Stark increases in national minimum wage (NMW) and employers’ National Insurance have made it extremely expensive to take on new staff, particularly younger generations, many of whom tend to take their first step on the career ladder in consumer-facing businesses.
“The industry wants to see lower taxes for younger people and a freeze on NMW rises so that hiring of the younger generation can become more viable again.”
Moseley added employers across the sector would be “wating with bated breath” to see what new NMW rate will be from April 2027 in next week’s Budget.
He continued: “With almost one-million people aged between 16 and 24-years-old not in education, employment or training (NEETs), a change in Government policy has the potential to give the whole economy a shot in the arm.”
