lovelyshine

With the impending recession, do you think hospitality jobs will be cut? I know many parts of Australia have low supply of hospitality people. It has always been supply < demand. Think this will continue?

POW148

Who says that a recession is impending.

I dont believe that there is going to be a recession. Times will be a little bit tighter for most. Banks will not be handing out money to all and sundry as they have been doing in the past.

As for hospitality jobs being cut, when people dont have that much spare money they will certainly eat in instead of eating out so I guess these type of cuts get passed on.

Barney

asprilla

Yes, I think hospitality, tourism, catering etc. will all suffer badly in the event of a recession.

In a recession, a large % of the population slow their spending, so that they can save money. This often means people will skip a holiday and stop eating out.

I have heard anecdotal evidence that the hospitality sector around cairns has been suffering for some time now. Cairns is in an unfortunate position because its local economy depends on tourism and sugar cane. The sugar industry is also slowly declining.

iamthecreaturefromuranus

I posted this in another thread, but it seems just as valid in this one...

Forget all the incomprehensible, at least to most of us, stuff you read about the economy. Recessions start like this....

I had planned to have a new kitchen fitted and new front doors as well… total cost was probably about $25k. That won’t be happening now. The money will be staying firmly in my pocket. I will be one of tens of thousands of people making similar decisions, and there, in a nutshell, you have your recession.

bcworld

There have been a number of news articles I have read recently regarding the state of trade in Brisbane restaurants & bars. Covers are apparently down something like 25% compared to this time last year.

Another thing cited is that festivities planned for this years Melbourne Cup day are much less lavish than before.

Skipping meals & nights out is the thin end of the wedge, it surely also follows on to tourism and other areas of discretionary spending.

lovelyshine

Thank you, guys, for chiming in. It is hard to judge the situation, especially when you are overseas. So it is great to hear things from the local (Aussie) context.

I am headed there for school next year and my boyfriend is coming along. I just hope he will get a job there because we cannot afford to have both of us not working. I know they will cut some jobs, I just hope not that many where it will be hard for him to find a job. He is leaving his job of 8 years to come with me. Definitely risky at this point in time, but I hope it works out good.

POW148

You may be right by stating that a few tens of thousands will be cutting back on extensions/renovations ect. There have been times in my life when times got tough and I wasnt able to do what I wanted for lack of cash flow or fear of the unknown with the economy. I will now be one of the many who will be spending on building so there goes the money back into the economy. Maybe not the recession as you predict.

It is just going around on natures cycle. One shoe does not fit everyones feet.

Barney

daunted

I work in the hospitatility industry and both private and corporate business is down considerably on last year, having said that there are still plenty of advets for hospitality staff!!

lovelyshine

As long as there are still plenty of adverts!

iamthecreaturefromuranus

I think its unlikely that many people will be thinking about spending additional cash at this precise moment. I think most people, like myself, will be hanging on to any spare cash they have for grim death. I help supply IT services to several large insurers and banks. We have already been put on warning that we can expect serious staff cutbacks. That would be potentially millions of dollars in wages taken out the local economy.... and we are just one small part of a whirlwind that is about to break across Australia.

rabsody

Indeed. I used to work for a large wine wholesaler (products on most A-C grade restaurant wine lists throughout Qld as well as bottle shops). I have heard from one of the senior salespeople "this is the quietest I have seen it on the coast in the 10 years i've been doing this job".