Dive Brief:
- Demand for U.S. hotel industry jobs over the next five years is projected to outpace overall market job growth by approximately 4%, according to a new report by labor market analytics firm Lightcast on behalf of the AHLA Foundation, the charitable arm of the American Hotel and Lodging Association.
- A large share (76%) of the “robust” hotel industry demand is at the entry level or in roles that don’t require college degrees, according to the report. As of August 2023, entry-level job opportunities were abundant at hotels — more than 115,000 to be exact, approximately 81% of all active postings, the report found.
- The demand increase signals optimism for the hotel industry, which has been working over the last several years to recoup labor losses brought on by the pandemic. But, the heightened demand may not be enough to bolster a full recovery — at least not in the short term.
Dive Insight:
The hotel industry is expected to see 12% job growth over the next five years, while the nation overall will see 8% job growth across all industries, the report found.
More and more workers are looking to enter the hotel industry because it’s “an attractive time” to do so, according to Anna Blue, President of AHLA Foundation.
This year, hotels are projected to pay employees a record $123 billion in wages, salaries and other compensations, AHLA reported in January. That’s 4% more than in 2023 and 20% more than in 2019.
Hotels have consistently increased wages in the years following the pandemic to fight labor shortages, which have been severe enough that they have negatively impacted hotel operations in some cases.
However, as inflation and the cost of living in many cities have simultaneously risen, some hotel workers claim wage increases have not been sufficient to keep up, leading thousands in Southern California, Las Vegas and Detroit to strike or threaten to do so in recent months. For union workers in Las Vegas and Detroit that was successful, resulting in increased wages.
The hotel industry is expected to hire more workers this year, AHLA reported in January. But, despite the draw of record wages, hotels won’t gain enough employees to reach pre-pandemic levels.
To continue building the hotel workforce, AHLA Foundation is focused on “supporting the recruitment, retention, and advancement of people in our industry,” Blue said.
“Understanding the entry points where careers begin, where they lead, and what paths they take is a critical step to helping [workers] find their home in hospitality,” she added.
The AHLA Foundation report found that the most common occupations for those entering the hotel industry are front desk agent, restaurant server and room attendant.
However, the roles that provide the broadest career pathways are managerial roles, the report detailed. “Achieving seniority in an occupation with broad responsibility opens doors within the Hotel Industry,” the report said.
As for recruiting workers, particularly those of younger generations, hotel leaders shared during AHLA’s inaugural Hospitality Show conference in June that incorporating technology to streamline the hiring process can be a practical way to secure emerging talent.
