More workers returning to hospitality sector as Covid-jobs decline: ABN Amro
The catering sector seems to be steadily filling its vacancies and staff shortages - the number of workers entering the sector was much higher than those leaving last month, ABN Amro reported. The bank attributes this to "coronavirus jobs" phasing out and higher wages in the collective bargaining agreement reached in April 2022.
The catering sector is benefiting from significant catch-up growth now that the coronavirus restrictions are a thing of the past. But the downside to that was a "staff wanted" sign in almost every window. Many workers left the sector and found other jobs during the lockdowns. But the turnaround seems to have arrived, ABN Amro said, based on the number of people who receive an income from a company active in the hospitality sector.
The number of workers in the sector is still well below pre-pandemic levels. But in the past month, the number of incoming workers far exceeded the outflow. "Since our observation period - from the beginning of 2018 - the net inflow of employees in the hospitality sector has never been as high as in March this year. This suggests that the shortage is slowly disappearing," the bank said.
ABN Amro thinks that people leaving coronavirus jobs as test centers, call centers, and vaccination locations close are moving to the catering sector for work. The wage increase of 3.4 percent negotiated in the collective agreement likely also attracted more people.
The government's coronavirus support ending and higher energy bills will lead to more bankruptcies in the sector, which is another supply of personnel, ABN Amro added.
"This means that the turning point seems to have been reached, and we expect the labor shortage in the hospitality industry to ease," the bank said.