Wages for Hospitality and Leisure Industry Climb

Hospitality and leisure businesses were hit hard by the COVID-19 pandemic. However, by March 2024, hospitality and leisure employment had climbed back to its pre-pandemic level. In fact, industry workers today stand out as big winners when it comes to wage growth, according to ADP Research’s quarterly Today at Work report.

According to the report’s wage data analysis, since November 2018, wages for hospitality and leisure industry new hires have jumped more than 38%, a gain second only to trade and transportation. By November 2023, the median wage for new hospitality and leisure hires was US$15 an hour.

Interestingly, ADP Research also found that since December 2022, hospitality and leisure job-stayers have recorded larger year-over-year pay gains than industry new hires. Typically, people who quit their old jobs for something new enjoy bigger wage increases than workers who stick with their employers.

However, in September 2024, year-over-year pay for job-stayers was up 4.6%, compared to 3.3% for job-changers, according to ADP Research. Why? ADP research found hotels, restaurants, and other employers were forced to work harder not only to acquire talent but retain it. As they raised wages for new hires, they also boosted pay for experienced employees. Hospitality and leisure was the only sector to claim double-digit annual pay gains for job-stayers between November 2021 and February 2023.