Proportion of EU workers in UK hospitality drops heavily

Brexit and Covid combined to make the perfect storm for British employers, writes Sam Hancock

Brexit and Covid has combined to make the perfect storm for British employers (AFP/Getty)

The number of EU workers employed by Britain’s hospitality sector has dropped by more than 40 per in the last two years, according to new figures.

People from European Union countries made up 37 per cent of the workforce at more than 700 hospitality companies in June, down significantly from 43 per cent two years ago, according to Fourth, a company that provides software to the industry.

Meanwhile, the proportion of British workers employed by the sector rose from 46 per cent to 51 per cent in the same time period, the report shows.

“A potent combination of Britain’s departure from the EU and the devastating impact of the pandemic continues to significantly shake up the sector’s labour market,” said Fourth’s Sebastien Sepierre.

Restaurants and pubs across England have reported staff shortages in recent weeks, so bad in some cases venues have been forced to close or slash services.

In the week leading up to so-called “freedom day” on 19 July, the trade association UKHospitality estimated nearly one in 10 hospitality roles was vacant – suggesting a shortage of more than 180,000 workers.

Long hours, no breaks and chaotic shift patterns are some of the complaints from staff hanging on during the shortage, initially sparked by Brexit but made worse by coronavirus.

Thousands of workers in the sector are also still furloughed, Fourth’s data reveals.

Almost 50 per cent of staff on the hospitality payroll are still thought to be on full or flexible furlough. While this is the lowest since the scheme began during the pandemic, it still represents a large portion of the workforce.

“The much-publicised staffing crisis is proving hugely challenging for operators, as a consequence of a clear shrinking of the labour pool, in back-of-house roles in particular,” Mr Sepierre told the PA news agency.

“It remains unclear how long this disruption might last and how it will be resolved in the months ahead during the long road to recovery.”

The trend towards fewer EU and more British workers looks set to continue after the fallout from Boris Johnson’s doomed EU Settlement Scheme.

On the day all applications for settled status were due – 30 June 2021 – thousands of EU citizens were warned they could be stripped of their rights in the UK despite jammed Home Office helplines and website delays making their applications impossible to complete.

Ministers were accused of “risking a terrible injustice” by refusing to extend the deadline, but the prime minister later confirmed to MPs that the government would not amend the policy.

According to Fourth, 63 per cent of hospitality sector new starters in June were British – the highest figure since the company began measuring such data in 2016.

On the other hand, EU citizens made up just 28 per cent of new starters, which, compared with the 50 per cent it was in January 2019, shows a growing downwards trend.

PA contributed to this report