Got a staff shortage? Raising wages normally helps

Analysis: As the UK's post-lockdown hospitality sector struggles to find staff, one obvious solution presents itself

From Michel Roux Jr to Tim Martin, from swanky Le Gavroche in London to Wetherspoons pubs, the message is the same: we need more staff. Labour shortages were not a problem envisaged when the UK was plunged into lockdown in the spring of 2020. Then, the fear was of massive job losses and the highest unemployment since the 1930s.

Now, the hospitality sector says a lack of chefs, bar staff and waiters is affecting trade. Roux has announced he is closing Le Gavroche at lunchtimes. At Wetherspoons, Brexit-supporting boss Martin has urged ministers to use their ability to set immigration laws to grant visas to EU citizens.

One of the basic tenets of economics is that raising the price of something increases its supply