What: The Leisure and Hospitality Sector Added Just 23,000 in November
According to the November jobs report from the U.S. Bureau of Labor Statistics, the leisure and hospitality sector added just 23,000 jobs last month, with nearly 8% of the sector’s total jobs still lost. Overall, the industry is down 1.3 million jobs from February 2020. In total, the U.S. economy added a disappointing 210,000 jobs in November, despite strong gains in October that had economists expecting to see 500,000-600,000 jobs added (although the unemployment rate did fall to a pandemic low of 4.2%).
Why It Matters: Slow Recovery of This Sector Is Affecting the Overall Economy
Leisure and hospitality continues to be one of the pandemic’s hardest-hit sectors, and November was a particularly slow month for recovery (October, by comparison, added 164,000 jobs). And in fact, jobs that remain lost from this segment may be contributing to the wider economic slowdown — according to The New York Times, the U.S. economy is still about 4 million jobs below pre-pandemic levels, and roughly one-third of those positions are in leisure and hospitality. What’s more, the sector is highly vulnerable to COVID-19 spikes and scares. More measures to protect and add jobs (especially amid the threat that Omicron and other variants continue to pose) would likely not only aid the sector’s recovery, but provide a major boost to the jobs market overall.
What They Are Saying: Policies and Stability Are Needed to Facilitate Travel’s Recovery
Tori Emerson Barnes, executive vice president of public affairs and policy for the U.S. Travel Association, issued the following statement in response to the report:
“The latest jobs report — the worst for the leisure and hospitality sector since January — underscores the need for smart, effective policies, as well as stability in the inbound and business travel segments, to facilitate an even recovery.
“As more is learned about the Omicron variant, we must continue to welcome qualified global travelers from around the world, which will be critical to rebuilding the leisure and hospitality sector, as well as advance the safe recovery of business travel and professional events. Now is not the time to enact policies that stifle growth and dissuade inbound travel.
“Temporary tax credits to spur increased business travel and emergency funding for Brand USA, the United States’ destination marketing organization, will help boost travel spending and accelerate job growth.”
The Details
U.S. Bureau of Labor Statistics
