A new report by UKHospitality introduces the Social Productivity Index, a comprehensive approach to measuring the contribution of UK industries. Unlike traditional economic indicators such as GDP, this index combines economic, geographic, and social measures to assess how well sectors contribute to inclusive national growth. The findings place hospitality at the top of the ranking, highlighting its central role in economic resilience, regional development, and social inclusion.
Understanding the Social Productivity Index
The Social Productivity Index evaluates five core outcomes, each supported by publicly available data:
- Economic Impact: This includes pre- and post-pandemic growth and Gross Value Added (GVA).
- Geographic Impact: Measures the spread of employment across the UK.
- Social Accessibility: Assesses how open sectors are to underrepresented groups.
- Social Mobility: Evaluates how well sectors provide opportunities to those without traditional qualifications.
Economic Impact: Resilience and Contribution
Hospitality ranks sixth for pre-pandemic growth and fifth for post-pandemic growth. This demonstrates the sector’s ability to rebound from major economic disruptions, such as COVID-19. Despite being significantly impacted during the pandemic, hospitality has maintained strong growth momentum.
In terms of GVA, hospitality ranks thirteenth among UK sectors. It outpaces industries often seen as high value, such as automotive, pharmaceuticals, and aerospace combined. This places hospitality firmly among the UK’s key economic contributors, proving its economic relevance and sustained output.
Geographic Impact: A Nationwide Employer
Hospitality ranks fourth for the geographic spread of employment. This means that hospitality jobs are not confined to specific economic centres but are distributed widely across all UK regions. This decentralised presence ensures that communities in all parts of the country benefit from employment and economic activity within the sector.
This widespread footprint contrasts with high-productivity sectors that are often geographically concentrated, reinforcing the importance of hospitality in balanced regional growth.
Social Accessibility: Opening Doors for All
Hospitality scores highly across several indicators of accessibility:
Gender Balance: Ranked fourth, the sector demonstrates near-equal employment of men and women. This reflects a more inclusive workplace compared to traditionally gender-skewed industries.
Disability Access: Hospitality ranks twelfth in this area. While not leading, this middle-tier placement indicates a degree of accessibility for workers with disabilities, though with room for further improvement.
Part-Time Work: With the highest proportion of part-time roles, hospitality offers vital flexibility. This accommodates individuals with caregiving duties, students, and others requiring non-standard hours.
Ethnic Diversity: Ranking fifth, hospitality employs a significant number of workers from ethnically diverse backgrounds, contributing to a more inclusive workforce.
Youth Employment: Hospitality ranks first for employing people under the age of 25. This shows its role as a key entry point into the workforce for young people, offering early opportunities to build careers and skills.
Social Mobility: Creating Career Pathways
Hospitality supports upward mobility through accessible career routes:
Access for Non-Graduates: Hospitality ranks first in providing roles that do not require a university degree. This makes the sector especially welcoming to those who have not followed a traditional academic path.
Non-Graduate Managers: It also ranks second for the proportion of managers without degrees, showing clear pathways for advancement regardless of educational background.
Socioeconomic Access: Ranked tenth, hospitality provides opportunities to individuals from families without professional or managerial backgrounds. While not leading, it still performs strongly in reaching underrepresented social groups.
These figures underline hospitality’s capacity to promote genuine social mobility by offering advancement based on experience and skill rather than formal education alone.
Implications for Policymakers
The report argues that policymakers should move beyond traditional productivity measures when designing economic strategies. It encourages a broader framework that includes social productivity and regional inclusiveness.
Policy suggestions include:
- Incorporating social productivity into public policy assessments
- Developing targeted regional strategies for sectors with high geographic spread
- Recognising how sectors like hospitality underpin the success of more traditionally favoured industries
Conclusion
The UKHospitality Social Productivity Index paints a comprehensive picture of the hospitality sector’s value. By excelling in economic resilience, geographic reach, and social inclusivity, hospitality proves itself as a cornerstone of national growth. The report highlights the need for future economic planning to factor in these broader measures, ensuring that growth is not only strong but also inclusive and widespread.
