A tepid July jobs report from the U.S. Bureau of Labor Statistics temporarily drove the stock market into panic and rose concerns about the health of both the U.S. and the global economy.
In July, fewer new jobs were created than in previous months (just 114,000), and the unemployment rate increased to 4.3%, according to the report.
But an analysis by the U.S. Travel Association shows that the travel sector remains strong amid market volatility.
"The data continues to reflect a resilient and responsive travel industry — an encouraging sign given travel’s essential role in our nation’s economic success and global competitiveness,” writes Joshua Friedlander, vice president of research for U.S. Travel Association, in a recently published analysis.
He shares that the travel industry and related sectors has added 18,000 jobs over the last two reported months, and that nearly 17 million people are employees of the Leisure and Hospitality sector, which is up almost 300,000 people year-over-year.
Because the demand for travel is high, Friedlander writes that “at least 1 million jobs remain open, bolstering the case for an expanded H-2B guest worker program to support small and seasonal businesses.”
Looking forward, the outlook for the travel industry is positive. According to Friedlander, “demand for domestic leisure travel through the summer and into fall remains strong, with 92% of American travelers planning trips within the next six months.”
Other data points he shares include the Transportation Security Administration’s recent record-breaking air passenger screening counts and travel volume figures. Compared to June and July 2023, travel volume is up 5.3%.
And visitation to the U.S. is growing as well, with year-to-date international inbound tourism up 18% this year.
“Inflation has cooled, and travel prices have not risen as fast as prices overall,” Friedlander added.
