Part-time jobs & working accounts for one in five jobs across Europe, and one in four in the UK, Hospitality utilises part-time and freelance workers to a higher percentage than many other sectors. This is partly because 84.3% of Hospitality operators say they are struggling to build a team with the right capabilities¹, and so are turning to freelance & part-time workers.
The hospitality sector in Northwest England, particularly in vibrant cities like Liverpool and Manchester, is experiencing a significant transformation thanks to the growing prominence of part-time work – the gig economy. This flexible workforce is proving to be a valuable asset for both businesses and the regional economy.
The Economic Impact
According to data from the Office for National Statistics (ONS), the Hospitality sector contributes approximately £6.9 billion annually to Northwest England’s economy.
The Liverpool City Region’s visitor economy, worth £4.9 billion (Liverpool City Region Local Enterprise Partnership), has seen a 15% increase in flexible working arrangements since 2019, demonstrating the growing importance of the part-time worker model.
In Manchester alone, the sector employs over 42,000 people, with nearly 40% working in flexible arrangements.
Benefits for Businesses & Cost-Effective Staffing Solutions
- Reduced overhead costs through flexible scheduling
- Lower training and onboarding expenses
- Ability to scale workforce based on seasonal demands
Research by UK Hospitality shows that businesses utilising flexible staffing models can reduce operational costs by up to 30% compared to traditional full-time employment structures.
In light of the announcements made in the Budget, there is a potential for a higher use of part-time workers due to the additional cost that fully employed staff will now cost.
We ran some figures to include the new employer NIC (National Insurance Contribution) rates to highlight the additional costs that employees will cost.
| Employee earnings | Employer NIC from April 2025 | Increase on 2024 |
|---|---|---|
| £5,200 | £29.40 | £29.40 |
| £10,000 | £749.40 | £624.60 |
| £35,830 (average UK salary) |
£4,623.84 | £934.56 |
| £12,527 (average Part-time salary) |
£1,128.48 | £654.96 |
Class 1A employees only. Does not take into account the Employment Allowance which was increased in the Budget from £5,000 to £10,500. Source: HMRC, OBR.
There could be a case for using more part-time or agency staff over recruiting more permanent full time employees, where the financial burden of the incoming employer NIC is lifted from the employer and placed on an agency, like Saffron Vanilla. Because of the very nature of ‘on demand staffing’ that recruitment agencies provide, the time in work & productivity would be higher in relation to the new NIC rates.
Enhanced Operational Flexibility
The ability to quickly adjust staffing levels has become crucial, utilising freelance & part time workers allows businesses to:
- Respond 60% faster to sudden demand changes
- Launch new services 40% more quickly
- Maintain profit margins during off-peak seasons
Case studies
Liverpool’s Baltic Triangle has experienced a 35% growth in food and beverage establishments. Similarly, Manchester’s Northern Quarter has seen a 40% increase in hospitality venues since 2018, largely supported by the availability of flexible workers – where 1 in 5 workers are on a part time basis, creating numerous opportunities for freelance & gig economy workers.
Advantages for Workers – Work-Life Balance
The flexibility offered by gig work has become increasingly attractive to various demographics:
- Students balancing studies and work (the Northwest has a student population of 267,025 ²).
- Professionals supplementing their income, workers having multiple jobs (this varies between 18% & 22% of each generational cohort ³).
- 45% of Part time / freelance hospitality workers earn above the National Minimum Wage whilst on an hourly rate ³.
- The ability to fit in other commitments is the aspect of shift patterns that is most popular reason for taking on part time work at 45%, followed by flexibility at 43%, interaction with customers and clients at 40%, and 27% value the choice over when they work ³.
Skill Development
Part-time hospitality workers often gain experience across multiple establishments, developing diverse skill sets and industry knowledge. According to the Greater Manchester Combined Authority’s skills report, multi-venue experience can increase earning potential by up to 25%.
Technology’s Role
Digital platforms and apps have revolutionised how businesses connect with temporary staff. Local initiatives like Manchester’s Hospitality Hub have reported that 65% of temporary staff placements now occur through digital platforms, streamlining the hiring process for employers, agencies, and workers.
Saffron Vanilla (The SV Group) have pioneered their own timesheet website for their candidates & clients, it removes any ambiguity, leaves a tiny carbon footprint, and is free for their candidates & clients to use. This type of innovation is helping to move part time & freelance Hospitality workers environments forward.
Future Outlook
The Northwest’s hospitality sector is projected to grow by 22% by 2025 (Northwest Business Leadership Team), with flexible workers playing a crucial role in this expansion. Key growth areas include:
- Boutique hotels
- Independent restaurants
- Event catering
- Pop-up venues
Saffron Vanilla (The SV Group) recruit & supply part-time hospitality workers for all of these sectors.
Challenges and Solutions
While the gig economy model presents numerous benefits, industry leaders are working to address challenges such as:
- Job security concerns
- Benefits provision
- Career progression
Many Northwest establishments are implementing hybrid models that offer both flexibility and stability, creating more sustainable long-term opportunities for workers.
Conclusion
The part-time and gig economy workforce has become an integral part of Northwest England’s hospitality sector. As Manchester and Liverpool continue to grow as major tourist and business destinations, this flexible workforce model will remain crucial for the industry’s success and adaptation to changing market demands.
To see how Saffron Vanilla can help your business, feel free to contact the team:
Contact Saffron Vanilla
Sources:
¹ The Six Tenets of Agile Hospitality – Hospitality Mavericks limited edition white paper, 2022
² Generating growth and opportunity in the North West – Universities UK, July 2024
³ State of Shift Work Survey – Deputy, 2024
Post written & researched by QED web design | WeAreQED