RAI deeply concerned at the latest CSO Labour Force Survey figures
The Restaurants Association of Ireland has today expressed deep concern at the latest Labour Force Survey figures from the Central Statistics Office, which show employment across food and beverage businesses falling by almost 20,000 over the past 12 months.
Figures underline the scale of the crisis
The Association said the figures underline both the scale of the crisis facing hospitality businesses and the importance of the Government’s decision to restore the 9% VAT rate from July 1st, which is a vital and much needed support for the sector.
According to the latest Labour Force Survey data for Q1 2026, employment across the wider hospitality sector fell from 186,500 in Q1 2025 to 169,600 in Q1 2026.
However, when accommodation is removed from the figures, the situation for the food-led hospitality sector is even more alarming. Employment across the sector has fallen from 136,000 to 116,000 over the same period, representing a drop of 14.7%.
Unsustainable cost increases
The Restaurants Association of Ireland said businesses are facing unsustainable increases in labour and operating costs, with many operators now reducing trading hours or closing on traditionally quieter midweek days.
The restoration of the 9% VAT rate will provide essential breathing space for businesses that have been under severe financial pressure in recent years.
The Restaurants Association of Ireland’s most recent member survey:
- 56% of businesses report labour costs exceeding 40% of turnover
- 75% are considering or have already reduced staff hours due to rising costs
- 50% have already reduced opening hours or trading days
- 53% are delaying or cancelling investment plans
The latest figures should serve as a serious warning
The Restaurants Association of Ireland said the latest figures should serve as a serious warning about the pressures facing one of Ireland’s largest indigenous employers. The decline is particularly concerning for rural towns and tourism dependent communities where hospitality remains a major local employer.
Adrian Cummins, Chief Executive of the Restaurants Association of Ireland, said:
“These figures are incredibly worrying and represent a frightening drop in employment across the food-led hospitality sector. Businesses have been warning for a considerable period that rising operating costs, particularly labour costs, were placing unsustainable pressure on hospitality businesses nationwide.
Our survey figures released last month showed this.The Government’s decision to restore the 9% VAT rate from July 1st shows that they have listened to the serious concerns being raised by hospitality businesses across the country. It is a very important and welcome recognition of the enormous challenges facing the sector.
We acknowledge the engagement and support shown by Government in responding to these challenges and the restoration of the 9% VAT rate which will provide much needed breathing space for thousands of hospitality businesses and the jobs they support.
However, these figures clearly demonstrate the scale of the challenge facing the sector and why the 9% VAT rate cannot come soon enough”
