What’s going on:
At the start of the COVID pandemic, a wave of layoffs swept across the US hospitality sector. But now, restaurants, bars and hotels have become some of the nation’s fastest-growing employers, leading to the lowest unemployment rate in decades.
According to the Wall Street Journal, the leisure and hospitality industries are replenishing its workforce as the tech industry dwindles. Because these companies offer more jobs than the tech industry, the labor market remains tight, which is a clear sign that the hospitality sector is roaring back to life.
Why it matters:
The fast-growing hospitality and healthcare industries, plus the hiring rate of the entire industry, are contributing to an impressive unemployment rate drop to a 53-year low.
In an effort to meet the rising demand, Chipotle recently announced the hiring of an extra 15,000 workers, while Kroger is looking to their former staff.
In January alone, the hospitality and healthcare industries added 207,000 workers — making up nearly half of the total private-sector gains.
How it’ll impact the future:
This recent development shows that the economy might be recovering, and that the job market is extremely healthy. Restaurants, bars, and hotels have emerged as some of the fastest-growing employers, reaffirming the sector’s strength and vitality.