Hospitality industry set to create 1 million jobs amid talent shortage

The hospitality industry is poised to generate around 1 million jobs over the next few years, driven by a significant talent shortage and rapid post-pandemic expansion, experts reveal.

"The current demand-supply gap of talent stands at around 55-60%, indicating a substantial mismatch between the needs and the available talent pool", said Sanjay Shetty, Director of Professional Talent Solutions at Randstad India

Hiring by hospitality sector

This shortage has been exacerbated by the surge in demand following the Covid-19 pandemic, with Shetty predicting that the momentum will continue, creating at least a million new jobs in the coming years.

The pandemic-induced boom has resulted in a more than fourfold increase in overall hiring, with entry-level positions being the most sought-after in the past two years. Companies have responded by upskilling existing staff and recruiting from other industries to fill the void. Additionally, they have intensified efforts to attract and retain talent by offering competitive salaries, benefits, and opportunities for career growth.

"It is estimated that in 2023, the tourism and hospitality industry provided employment to around 11.1 million people. By 2024, it is expected to require a workforce of 11.8 million individuals. This demand is predicted to increase to 14.8 million by 2028, with an annual growth of 16.5 per cent," said Dhriti Prasanna Mahanta, Vice President and Business Head of TeamLease Degree Apprenticeship

Balasubramanian A, Vice President and Business Head at Staffing, TeamLease Services, pointed out the significant gap between current manpower and future needs. "Data from the Tourism and Hospitality Skill Council (THSC) indicates that in 2023, only a fraction of available seats for hospitality management programmes were filled," he noted, underscoring the industry's pressing need for a skilled workforce.

In response to these challenges, many companies are investing in training programs and partnerships with educational institutions to ensure a steady pipeline of qualified talent. As the hospitality sector continues to expand, addressing the talent shortage will be crucial for sustaining its growth and meeting the increasing demand for services.

[With PTI inputs]

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