Wages in 2021 rose in the accommodation sector while employment fell, and the gap between the two is wider than in any other industry surveyed, according to analysis published by Lending Tree.
In its MagnifyMoney study, the company analyzed the latest quarterly census of employment and wages from the United States Bureau of Labor Statistics and found that the accommodation sector is the sector where the average weekly salary has increased the most. quickly relative to employment growth, rising from $629 in the first and second quarters of 2020 to $700 in the first and second quarters of 2021, an increase of 11.2%.
But employment fell by 11.3% between the first and second quarters of 2020 and the third and fourth quarters of 2021. The difference in the changes in wages and employment in percentage points is 22.5, creating, according to the study, “a mismatch between the supply of and demand for workers in the industry, combined with the willingness of some employers to take somewhat desperate measures to stay afloat, has resulted in a significant increase in wages of accommodation workers.
The hits keep coming
In September 2021, 6.6% of what the BLS defines as the accommodation and food services industry workforce was quitting at the highest rate of any industry. This included front-line workers like cleaners and waiters, whose past earning power was tied to tips.
Higher wages and compensation for these and other workers are among the supply and demand challenges facing the industry and could result in higher rates for corporate clients.
Travel buyers who have seen hoteliers’ challenges reflected in higher room rates can expect the same. Last month, STR and Tourism Economics raised their forecast average daily date for 2022 in the United States from $130 to $134. STR SVP of consulting Carter Wilson said in a statement: “Recovery conditions are not playing out evenly across the board, and many hoteliers have had to raise rates to minimize the negative effects of labor shortages. labor and supply.”
For the accommodation segment, increasing wages and salaries seem to be the short-term solution as the industry struggles to find its new normal.