Food & BeverageNews In Brief

Is there any hope for the hospitality industry?

February to May sent Australia's employment rate plummeting and the Accommodation and Food Services industry lost the most jobs.

However, where there is innovation there is hope, and data analysts are feeling much more positive this quarter.

According to Finder Jobs Market Report, which looked at data from the Australian Bureau of Statistics Labour Force; although hospitality jobs have been hit hard, the “accommodation and food services industry has actually seen an increase in the number of jobs within the industry between May and August 2020, with an increase of 17 percent or 108,299 new jobs.

“When comparing this increase to the previous quarter, it can be seen that the accommodation and food services industry saw the most jobs lost out of all industries between February and May 2020, with a loss of 276,200 or 30 percent of its workers.

“Within this industry, the subcategory of food and beverages saw the biggest increase of 18 percent or 101,316 new jobs during between the months of May to August 2020”.

Fred Schebesta, Co-founder of Finder, told us: “The pandemic has hit the hospitality industry hard, as we’ve seen more jobs lost in this industry than anywhere else. 

However: “It’s great to see some steps forward to help revive the industry, taking example from New York’s Open Restaurant initiative to turn footpaths and streets into open-air dining areas. The pandemic is going to take a while before we ever get to how it was before COVID so restaurant owners need to look at other ways they can pivot their businesses such as takeaway and delivery, partnering with food delivery platforms, or even meal packages to cook at home. 

We’re seeing some great innovations in this space and I think it will continue to evolve as people get used to dining in.”

Finder compared the data from February to August and found: “The Coronavirus pandemic resulted in a detrimental impact on the hospitality industry as a whole, this is evident through the loss of 169,098 or 18 percent of jobs within the industry between the months of February to August 2020.

“All subcategories under food and beverage services saw a loss of jobs during this time. The subcategory of accommodation saw a loss of 14,510 jobs (15 percent) and the subcategory of food and beverage services saw a loss of 154,588 jobs (19 percent) between the months of February to August 2020.

Furthermore, the impact year on year for the accommodation and food services industry has been a loss of 139,427 jobs (15 percent) since August 2019. The subcategory of food and beverage services saw the greatest loss of 128,409 jobs which accounts for 92 percent of job losses within the industry.

Despite this recent drop, the number of jobs in the industry has still increased by 23 percent (142,134 new jobs) over the past 20 years. However, the accommodation subcategory still saw a loss of 26 percent (29,651 jobs).

Total Employed: August 2019 – August 2020 Accommodation and Food Services

 

Total employed persons by subcategory

Aug-2020

Aug-2019

Difference

% Difference

Food and Beverage Services 

677,449

805,858

-128,409

-16%

Accommodation

83,221

94,239

-11,018

-12%

TOTAL ACCOMMODATION AND FOOD SERVICES

760,670

900,097

139,427

-15%

Source: Finder, ABS. 

 

Mandy Clarke

Mandy is one of our most popular industry reporters. Make sure you never miss out on her monthly property profiles by subscribing to Resort News!

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