Understanding the Recent Surge in Restaurant Industry Employment Growth
Explore the factors behind the significant increase in employment in the restaurant and bars sector, implications of the latest jobs report, and disparities across different segments and states.
Photo by Aleksi Partanen on Unsplash
Photo by Aleksi Partanen on Unsplash
The Impressive Growth in Restaurant Industry Employment
The recent jobs report from the Bureau of Labor Statistics revealed an unexpected surge in employment, with approximately 254,000 new positions added in September. A key driver behind this remarkable growth was the restaurant and bars sector, which saw a staggering increase of 69,400 jobs on a seasonally-adjusted basis. This spike is a significant leap compared to the average monthly gain of 14,000 jobs in the sector over the previous 12 months.
Seasonal Trends and Industry Dynamics
Historically, the months of September, October, and November have been peak hiring periods for the foodservice industry, primarily due to the return to school of high school and college workers, leading to attrition in the sector. September's expansion marked the most substantial monthly increase in the industry in over two years, indicating a robust recovery and growth trajectory.
Photo by Aleksi Partanen on Unsplash
Quarterly Employment Growth and Post-Pandemic Recovery
In the third quarter, eating and drinking places added a net total of 136,800 jobs, representing the most significant quarterly employment growth since Q3 of 2022. This surge followed a period of high labor shortages and contrasts sharply with the meager 8,000 positions added in the second quarter. The restaurant sector currently stands approximately 1.5% (179,000 jobs) above its employment peak in February 2020.
Disparities Across Different Segments
Despite the overall positive trend in employment growth, disparities persist among various segments within the restaurant industry. Full-service establishments continue to face challenges in their recovery, with employment levels still 4% below pre-pandemic levels as of August. In contrast, snack and non-alcoholic beverage concepts have shown significant resilience, with employment levels up by 17% compared to pre-pandemic numbers.
Photo by Aleksi Partanen on Unsplash
State Disparities in Employment Levels
The uneven distribution of employment recovery is also evident across states. While 36 states have surpassed pre-pandemic employment levels as of August, some states, including Maryland and Louisiana, remain below, with employment down by 7%. States like South Dakota, Montana, Nevada, and Utah have demonstrated the most robust recoveries, with employment levels exceeding pre-pandemic figures by double-digit percentages.
