NEW YORK – U.S. restaurant employment in September finally matched pre-pandemic numbers, marking the first time in over three years, according to a report unveiled on Friday. This suggests a potentially broader rebound for the leisure and hospitality sector.
This is good news for restaurants across New Jersey.
Data from the Bureau of Labor Statistics (BLS), presented in the monthly U.S employment report, revealed that the number of Americans working in the food service sector grew by 61,000 from August to September. This sector, which added 96,000 positions last month, primarily consisted of food service and hospitality employees.
September’s growth in restaurant and bar employment, which was nearly twice the 37,000 job average added monthly in the past year, points to significant gains.
The broader picture for American employers in September saw the addition of 336,000 jobs, while the unemployment rate remained steady at 3.8%, as per the BLS.
The food service sector was profoundly affected during the COVID-19 pandemic. In March and April 2020, the industry saw a staggering loss of 6 million jobs, as stay-at-home mandates led people to dine indoors. Remarkably, although only constituting 8% of total employment at that point, restaurant and bar employees made up over a quarter of the massive 22 million layoffs, BLS data highlights.
As the pandemic’s grip lessened in 2021, and vaccinations became widespread, the challenge for food establishments shifted to rehiring frontline staff due to lingering COVID-19 health apprehensions.
Acting Labor Secretary Julie Su expressed optimism, stating, “It took some time but we made it.” She emphasized that the notable wage increases, especially among lower-paid workers, have made a positive impact on the economy. “People have returned to normal,” she remarked, adding that when workers earn sufficiently, they can boost continued job growth in industries, like food service, that were severely affected during the pandemic’s onset.
However, while the food sector has observed payroll growth, the broader leisure and hospitality industry has faced challenges in reverting to its pre-pandemic employment status in a competitive labor market. Hotel employment is still 10% behind its status before the health crisis, whereas the performing arts and spectator sports sector is 5% ahead of its February 2020 employment level.