Summer Hiring Cools as June Job Losses Bite

Job Losses Temper Summer Hiring

Leisure and hospitality employers cut 61,000 jobs in June 2026, and the food and beverage serving subsector accounted for nearly 33,000 of those losses. Yet restaurants are still slated to bring on 450,000 seasonal workers this summer, down from 469,000 last year and marking a third straight year below 500,000 hires. The split screen is stark: fewer payroll jobs on the books, paired with a peak-season staffing push that is smaller than it used to be.

Recovery Remains Thin

The recovery remains thin. Employment in eating and drinking places sits just 62,000 jobs, or 0.5 percent, above its February 2020 peak, a reminder that demand has outpaced headcount in many markets. Hiring channels that once fed summer rosters are tightening too. ManpowerGroup’s 2026 Talent Shortage Survey reports 74 percent of hospitality employers struggling to fill open roles, among the highest rates in services. The number of 20- to 24-year-olds in the labor force dipped to 15.4 million in April 2026 from 15.5 million a year earlier, trimming a core source of seasonal talent. Fewer applicants and higher wage expectations are pushing operators to rethink the offer.

Operators Rethink Staffing

The response is both practical and long-term. Many restaurants and care franchises are boosting pay, offering flexible schedules, and investing in training. Entry-level wages in the restaurant industry have climbed by double digits percent year-over-year in some markets, according to industry analysis. Employers are widening the aperture on who they recruit, tapping veterans, nontraditional workers, and career-changers. Digital onboarding platforms and internal training academies are being used to speed up time to productivity and to cut early turnover. These moves signal a shift from a short seasonal sprint to building year-round capability.

Training And Pay In Focus

Leaders on the ground describe the same pivot. Senior Helpers CEO Peter Ross put skills at the center: “We do training on chronic illness. We do training on how to use medical equipment so that they’re better suited to be out there… and actually be able to handle the care plan that we designed for them. So that’s really important from a skill training perspective.” He added that caregiver wages, now averaging about $17 an hour, have risen significantly over the past five to seven years as candidates weigh pay more heavily.

Kal Gullapalli, franchisee of PopUp Bagels, Dave’s Hot Chicken, and Marco’s Pizza, said the brand’s high-energy vibe “really helps bring in… high-quality people” and that he maintains compensation “well above market” to reduce turnover. Southpaw Co-CEO Judd Wishnow noted his group willingly accepts an immediate 2.5 percent margin decline at newly acquired units to fund industry-leading bonuses and benefits. Tierra Encantada CEO Kristen Denzer underscored pathways, saying, “A big piece of retention… is around career advancement.”

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Higher Pay, Tighter Margins

Paying more and offering fuller benefits brings a clear cost. Southpaw anticipates an immediate 2.5 percent margin decline when it takes over a new restaurant, reflecting higher day-one bonuses and health coverage. Across the segment, starting pay in eating and drinking establishments has risen more than 15 percent since 2021, outpacing both inflation and general private-sector wage growth. Senior Helpers’ model of matching caregivers to clients through home-to-office work transitions ensures consistent paychecks, but it adds administrative overhead. The Bureau of Labor Statistics published June employment figures on July 2, and the National Restaurant Association released its summer hiring forecast on June 24, timing that gives operators mid-season markers as they adjust schedules and budgets.

Open Roles Persist

Demand for people has not disappeared. Accommodations and foodservices employers reported an average of 843,000 open positions per month over the past year. In May 2026 alone, the restaurant and lodging sector listed 776,000 openings after several months of decline. Tourist hubs are wrestling with another constraint: visa delays for J-1 exchange workers. WBUR reports enhanced scrutiny and processing backlogs have left many prospective summer employees stranded abroad, complicating staffing for Cape Cod hotels and eateries.

Uncertain Summer Outlook

Whether restaurants will hit the 450,000 seasonal jobs projected this year remains uncertain. Early-season hiring in April and May lagged comparable months in 2019, and regional gaps are widening, with resort and rural areas facing sharper shortages. Data lags in BLS and JOLTS limit real-time course corrections, and potential policy shifts around work authorization programs or minimum wage legislation could reshape plans mid-season. Operators that stay ahead are coalescing around a simple formula: competitive pay and day-one benefits, rigorous training, and transparent career tracks, supported by cross-training, alumni networks, and community partnerships. The goal is steady service and controlled labor costs through summer’s peak and into fall, built on teams that want to stay.