Hospitality Industry Hit Hardest by US Labor Shortage
Hospitality has experienced the highest quit rates of all U.S. industries.
February 15, 2024
According to data recently released by the U.S. Chamber of Commerce, the leisure/hospitality industry in the United States has been hit hardest by the country’s current labor shortage.
A quit rate, as defined by the U.S. Bureau of Labor Statistics, represents the number of employees who leave companies of their own accord during a given month as a percentage of employment. The December 2023 quit rate for the industry was 4.3%—higher than all other industries, including wholesale/retail (2.5%), professional/business (2.5%), financial activities (1.5%), and durable goods manufacturing (1.3%).
The U.S. Chamber also reports that the industry has consistently maintained the highest quit rate over several years, with the accommodation and food services industry subsector experiencing a quit rate above 4.5% since July 2021. “Jobs that are fully in-person and traditionally have lower wages have had a more difficult time retaining workers, even prior to the pandemic,” the article stated.
However, rather than reflecting what has been called “The Great Resignation,” the U.S. Chamber found the current data to be better described as “The Great Reshuffle.” While the leisure/hospitality industry is losing workers at the highest rate, it’s also maintained the highest hiring rate among the nation’s industries since 2020 (between 6% to almost 19%). Compare these rates to the national average, recorded at just 3.7% in September 2023.
The article noted that the professional and business services sector, along with the education and health services sector, exhibited the highest number of job openings. The professional and business services sector represents a broad variety of occupations, including landscaping workers, cleaners, and waste disposal workers.
The leisure/hospitality industry also recorded the highest unemployment rates, at 4.8%. According to the article, a “healthy” unemployment rate in the U.S. normally falls between 3% to 5%.
To see more of the data, visit the U.S. Chamber of Commerce website.
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