Leisure and Hospitality Jobs See Significant Growth in August

Leisure and Hospitality Employment Increases in August

Despite challenges like declining tourist numbers in Las Vegas, the leisure and hospitality sector experienced a notable employment boost in August, with an additional 28,000 jobs added. Currently, the industry employs over 17 million people nationwide.

Growth Within Food Services and Recreation

The food services and drinking establishments subsector expanded by 11,000 workers during the month, reaching a record-high workforce of 12.37 million. Likewise, jobs in amusements, gambling, and recreation increased by 12,700 positions, totaling approximately 1.89 million employees, despite rumors of some staffing reductions at major venues.

Accommodation and Wage Trends

Overall, accommodation and food services combined saw a rise of 13,200 jobs, bringing their total to 14.32 million according to official reports. Additionally, wages for nonsupervisory staff rose modestly by nine cents to $20.31 per hour in August, marking a 0.45% increase from the previous month and a 3.5% growth compared to last year.

Emerging Challenges in the Leisure and Hospitality Sector

The sector’s unemployment rate rose to 6.4%, representing 890,000 individuals, an increase from 5.5% (748,000) a year earlier. This trend aligns with typical industry dynamics, including high turnover at entry-level positions and difficulties managing childcare-related scheduling, particularly affecting female workers who now make up more than half of the workforce.

Industry Adaptations and Revenue Drivers

To manage rising labor costs and attract skilled employees, establishments like restaurants are adopting strategies such as menu engineering, streamlined service processes, and pre-batching preparation. Revenue is also stimulated by events like tournament kickoffs and slot competitions, which encourage increased consumer spending and lead to improved profit margins.