The hospitality industry is arguably the sector most severely affected by the COVID-19 pandemic. During the crisis, workers left the industry for jobs that remained viable under restrictions. The challenge was that, post-pandemic, many didn’t return. Other jobs were simply more appealing.
The disparity in two figures from our graphic would likely be described as “totally shocking” in modern slang. This refers to the gap in demand for skilled workers between 2021 and 2022.
In 2021, only 1,558 skilled hospitality workers were missing, but by 2022, that number had surged to 24,758—over 10,000 more employees than before the pandemic in 2019.
Looking at 2024, with a reduced shortage of 8,810 skilled workers, there is still little reason for optimism. According to Tagesschau.de on March 14, 2024, about 10% of hospitality businesses closed in 2023, permanently removing their taps. Businesses that no longer exist don’t need employees, which may partly explain the reduced demand.
Why Can’t Supply Meet Demand?
Examining the other data — open positions and the number of unemployed hospitality workers — raises the question of why the available workforce cannot fill the demand. One of the key issues, which has long plagued the industry, is the working hours.
For workers who switched to other sectors, this aspect is critical. For instance, in Germany, retail stores remain closed on Sundays, the busiest day for excursion restaurants.
Additionally, late evening shifts during the week, coupled with relatively low pay, make hospitality jobs unattractive. According to the German Federal Statistical Office, guests are spending less freely than before the pandemic. This means no second beer, smaller bills, and less tipping, which is a significant component of wages in the industry — not just in Germany.
What Does the Staffing Shortage Mean for the Future?
The long-term effects have been evident for some time. A striking example is Füssen, a popular tourist destination in Bavaria. In April 2022, it was impossible to get a drink after 9 PM. The town was deserted, with closed establishments citing staffing shortages as the reason they couldn’t operate beyond nine- or ten-hour shifts due to overtime regulations (Source: Kreisbote.de).
This problem is not unique to Füssen but can be seen nationwide, particularly in rural areas. In metropolitan areas, it’s somewhat easier to find part-time staff for late shifts, even on a mini-job basis.
The so-called “pub death” is likely to continue. Similar to nursing homes, establishments are closing—not due to a lack of customers but due to a lack of staff to serve them.