The German hospitality sector saw a significant drop in employees last September compared to 2019, according to the Federal Statistical Office. Restaurants, bars, and cafes were hit hardest, with a 12% decrease in employment in the beverage serving sector. While restaurants, pubs, and cafes were closest to pre-pandemic levels in terms of staff, they still employed 4.1% fewer workers.
The loss of customer purchasing power and employee shifts to other sectors due to repeated closures during the pandemic are contributing to the struggles of the catering industry. Employees in this sector often earn below the low-wage threshold, with half of employment relationships falling below this mark in October 2022.
The decline in sales compared to pre-pandemic levels is also significant, with a 12.6% decrease recorded in September 2023. Thestatistics office noted that it's particularly challenging to survive in the long term as a restaurant business owner compared to other sectors, a fact that held true even before the pandemic.
Despite these challenges, the food service industry has been showing signs of recovery since the onset of the pandemic. Despite restaurants, pubs, and cafes coming closest to their pre-corona level in terms of staff, they still employed 4.1% fewer employees compared to September 2019.
Government measures like the Kurzarbeit scheme and economic stimulus packages helped mitigate the effects of the pandemic on the industry. As restrictions were eased, the job market in the food service industry showed signs of recovery, with the unemployment rate decreasing from 3.7% in March 2021 to 3.1% in January 2022.
However, the long-term impact of the pandemic on the food service industry remains a concern. Changes in consumer behavior and potential permanent closures of businesses are still being assessed.
(Enrichment Data integrated into base article: The employment in the German food service industry has been severely impacted by the pandemic, with initial lockdowns and restrictions leading to a sharp decline in jobs. The German government introduced the short-time work scheme (Kurzarbeit) and various economic stimulus measures to help mitigate the effects. As restrictions were gradually eased, the industry began to recover, with unemployment rates decreasing and the job market showing positive trends. However, the long-term impact of the pandemic, including changes in consumer behavior and potential permanent closures of businesses, remains a concern.)
