Fair Work Ombudsman has commented that the cases of underpayment are more frequently discovered in the hospitality industry. According to a 2015 report, it was found that 456 businesses were found to have short-changed 2752 employees. According to the FWO, this has become rampant and has increased in unprecedented levels in the current times. There has been considerable impact on the working population owing to this reason. Workers who are willing to work for lower minimum wages displace regular workers. The reasons for this issue have been probed in detail in this analysis. Hospitality industry is currently going through transition owing to other events in the society. Financial stress of the markets has caused considerable impact on the economy. This has affected the hospitality industry. There has been a rise in tourism and an increase in the flow of traffic for tourism. There have also been a number of efforts undertaken by the government to promote tourism and increase the number of domestic tourist. Owing to this, there have been a number of new crops of restaurants and hospitality services opened across Australia.
There has been a rise in the employment growth at unprecedented levels. Generally, there has been increase in population and also increase in migrant population into Australia. The inflation rates have been skyrocketing in recent times. Due to this, the simple supply of workers has increased in the domestic markets. There is only so much of cash flow generated. There are significant gaps and a growing number of disproportionate aspects in society. Subsequent to this, there has been an increase in the number of people who are available to work and live in poverty condition. To meet the demands of society, people are willing to work for lower wages. Simple economic theory of supply and demand can be used to understand this analysis. It has been found that there has been increase in the number of workers and unskilled workers have increased. Reasons for the increase in the number of workers are the rise in low skilled immigrants and college workers. They allow themselves to be exploited. In this case, there has been a rise in the number of employers exploiting the employees.