They are back

During the covid pandemic many pundits questioned whether leisure and hospitality workers would ever go back to a sector that is oftentimes characterized by below-average wages, long working hours and a stressful environment. Well, they have, and employment is now 2% higher than at the pre-covid peak with 16.7 million private employees currently working in the sector. Consumers have flocked back to hotels, planes, cruise ships, restaurants, and bars, requiring companies to hire more staff. To attract employees in a tight labor market companies have increased wages (often more than inflation), increased automation and the increased the number of employees relative to output. This has put pressure on their profit margins but was necessary to fulfill demand and increase revenues.

Source: ADP, July 2023.