Hospitality wages outpacing inflation

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Research by the ALMR shows that wage growth in the hospitality sector has outstripped inflation in each of the last three months on record.

After a difficult start to the year when the sector was hampered by poor weather and economic uncertainty, wages in the sector rose by more than the CPI rate of inflation in June, July and August, underlining the contribution made by the industry to economic recovery and the job‐creating potential of the sector.

Commenting on the findings, Kate Nicholls, ALMR Strategic Affairs Director, said: “These figures demonstrate that even in continuing difficult economic circumstances, retailers are managing to ensure that staff are rewarded. It confirms the finding from our 2013 Benchmarking Report, which showed that payroll now accounts for 25.4% of revenue, an increase on 2012.”

Data from the ALMR’s October 2013 survey of wages reinforces the findings, with fewer workers being paid the bare minimum. The survey shows that the proportion of staff whose wages increased as a direct result of the October 2013 uprating of the National Minimum Wage declined to pre‐recession levels, having peaked at 79% last year.

Nicholls continued: “These findings show clearly that when the market allows it, hospitality businesses focus on rewarding their staff. Although we are delivering higher wages and economic growth, the market remains volatile and highly responsive to external pressures. Reductions in the cost of regulation would free us to focus on generating jobs, growth and prosperity for our local communities.”



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