Overall, there were about 16.24 million leisure and hospitality employees within the United States in the month before the pandemic hit in February 2020. That number fell to 8.7 million in April 2020 and has not fully bounced back, reaching 15.76 million in August,Additionally, the industry has grappled with relatively high turnover compared to other sectors.
The quit rate, or the percentage of people who voluntarily leave their job, has been the highest in accommodation and food services through the pandemic and the Great Resignation. It was 5.6% in July, more than double the overall national 2.7% quit rate, although it is down from the 6.4% quit rate the category saw in July 2021, according to the BLS.
But the Federal Reserve’s continued interest rate hikes to tame high inflation are increasingly looking to change one particular sector of the economy — the roaring job market. said while the economy has slowed from its 2021 pandemic highs and higher interest rates have weakened the housing market and slowed business investment, the labor market has continued to stay strong.
“Despite the slowdown in growth, the labor market has remained extremely tight, with the unemployment rate near a 50-year low, job vacancies near historical highs and wage growth elevated,” Powell said."The labor market continues to be out of balance, with demand for workers substantially exceeding the supply of available workers.”