Claiming that government measures are increasing employers’ expenses, it’s reported that nearly 1,600 employees lost their jobs in the restaurant industry last month. According to the Irish Tourism Industry Confederation (ITIC), the rise in minimum wage, VAT and social insurance rates, introduced in January, are expected to add an extra €456 million to the wage expenditure of hospitality businesses this year, possibly already causing job losses.
The Association of Restaurants in Ireland (RAI) stated that the heightened costs led to the closure of 71 eateries, cafes, and similar businesses in February. Adam Hallissey, who serves as the association’s executive for public affairs, suggests that, on average, each business would have employed 22 people, potentially resulting in a total of 1,562 job losses.
Reports of closures, along with figures from their own membership and notifications to the Companies’ Registration Office, form the basis of the RAI’s job loss calculations.
In a recent report by economist Jim Power, Analysis of Government Induced Costs on Tourism and Hospitality Enterprises, published by ITIC, it was argued it would be “naive” to believe that the sudden additional costs imposed on an already fragile industry wouldn’t have repercussions.