Struggles in the Hospitality Industry: Staff Shortages and Reduced Customer Spending
The hospitality sector is grappling with a severe skills shortage compounded by a drop in consumer spending. Luke Ridden’s Gold Coast distillery, for instance, is bustling with patrons, but attracting skilled staff is a major hurdle.
Before the COVID-19 pandemic, job ads at his bar drew over 200 applicants; now, only two potential employees have applied. This issue is widespread, with chefs, bakers, and waiters listed on the Jobs and Skills Australia’s (JSA) skills priority list.

The sector’s job vacancies remain high, though slightly reduced from last year. Additionally, customer spending has decreased, reflecting a broader trend. JSA projects Australia will need 21,400 additional hospitality workers by 2028.
The Restaurant and Catering Industry Association urges the federal government to offer training incentives similar to those in construction.
Moreover, a recent cap on international student numbers could exacerbate the shortage, as many hospitality workers are on temporary or student visas. While the government has introduced incentives for training, industry leaders warn that without more investment, the situation may worsen.
Source ABC